U.S. banking groups call for fixing the GENIUS Act stablecoin yield loophole

ChainCatcher news, according to Cointelegraph, several banking industry groups, including the Bank Policy Institute (BPI), have warned Congress to close the regulatory loophole regarding stablecoin yields in the GENIUS Act. This loophole allows stablecoin issuers to provide yields to holders through affiliated companies.

The banking industry groups stated that this could lead to up to $6.6 trillion in deposits flowing out of the traditional banking system, affecting credit supply and driving up borrowing costs.