U.S. banks and financial institutions are urging Congress to address a loophole in the GENIUS Act related to stablecoins, specifically concerning the payment of interest on stablecoin holdings. The Bank Policy Institute has highlighted concerns that this loophole, which allows affiliated companies to pay interest on stablecoins despite prohibitions for issuers, could trigger a substantial outflow of deposits from traditional banks. Industry groups warn that this could result in a shift of up to $6.6 trillion from bank deposits to stablecoins, potentially destabilizing the banking sector. Banks argue that without regulatory action, customers may prefer stablecoins offering interest, leading to what is described as "deposit flight." In response, fintech and crypto executives have separately urged the Trump administration to prevent banks from charging fees for access to customer data, emphasizing ongoing tensions in the evolving financial landscape. Meanwhile, fintech companies like Plaid continue to innovate in American banking but face challenges such as combating AI-driven fraud.