In money, you don’t eat the market — the market eats you 🍽️ @CampbellJAustin warns crypto investors to rethink disruption https://t.co/o5wS4XHBWf
Banks keep the upside, you take the downside 😡 @CampbellJAustin explains why stablecoins could flip this broken model. https://t.co/3ODfbFZBNX
Crypto Pulse Check ❤️🔥 Do you have a good understanding what the new US crypto law called the GENIUS act is?
U.S. banks and financial institutions have expressed concern over a loophole in the GENIUS Act related to stablecoins, urging Congress to close it. The loophole allows affiliated companies of crypto exchanges to pay interest on staking stablecoins, despite a general prohibition on such interest payments for issuers under the law. The Bank Policy Institute and other banking groups warn that this gap could lead to substantial outflows of bank deposits, potentially amounting to trillions of dollars. Banks argue that yield-bearing stablecoins threaten their business model by offering returns that could draw deposits away from traditional banks. The lobbying effort reflects ongoing tensions between the banking sector and the cryptocurrency industry, with banks seeking regulatory measures to limit the impact of stablecoin interest payments on their deposits. The GENIUS Act, which introduced stablecoin provisions into U.S. law, is seen as incomplete by banking advocates who believe further legislative action is needed to prevent deposit flight and protect the traditional banking system.
