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Bankers Sound Alarm Over Stablecoin Yields Threatening Traditional Deposits

Dario avatar
Shared by Dario • January 07, 2026

U.S. community bankers are urging Congress to close a perceived loophole in the GENIUS Act, warning that crypto exchanges offering yields on stablecoins could siphon billions from traditional bank deposits. This practice, they argue, undermines community lending and shifts funds to less regulated platforms, potentially destabilizing the financial system.