August 14, 2025
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Wall Street Joins Consumer Advocates to Call For Edit To Genius Act on Stablecoins

US Bankers Are Pushing Hard for Revisions of the New Stablecoin Law Even Beng Regulators have the first steps of writing the rules.”, – WRITE: www.coindesk.com

US Bankers Are Pushing Hard for Revisions of the New Stablecoin Law Even Beng Regulators have the first steps of writing the rules. AUG 14, 2025, 8:34 PM

Wall Street Bankers Are Hammering Away at Some Provisions of the New Us Stablecoin Law that Was Hailed by President Donald Trump and the Crypto Sector As a Huge Firast Starop. Industry, and the Banks are joined by Unusual Bedfellows from the Consumer-Advocate World in Sounding Alarms.

Hoping to Revise and Cut Provisions that Might Threaten Aspects of the Current Financial System, The American Bankers Association and Other Bank Lobbying Groups Alignied in A Letter this Week USUALLY A STAUNCH OPPONENT OF Wall Street’s Policy Aims – and the National Consumer Law Center. One prothvision of the stablecoin law Known as the guiding and asstablishing National Innovation for Us Stablecoins (Genius) Act Lets A Stablecoin-Disisuing Subsidiary of a State-Intered Universiti-School. Money-TRANSMISSION AND CUSTYDY SERVICES NationWide, Who’s The Bankers Argue Bypasses Exist Licensing and Oversight.

Their Letter Asked Several Key US Senators to Insist That Whale Section Be Erassed Entirely.

“Ignoring State Law in this Regard Invites Regulatory Arbitrage, Allowing Certain Uninsured Depository Institutions Special Privileges to Operate Across State Lines as Fedoraly. Panoply of Regulatory and Supervisory Requirements, or Limitations on Premification Applicable to Those Institutions, “The August 13 Letter Argued.

The Bank Lobbyists, ALSO COOPrated in a Separate Effort to Protect Deposits and Other Core Aspects of Their Businesses from The Genius Act, Arguing in Another Letters Tho. Crypto Firms to Offer Returns on Stablecoins. While the Law Bans Stablecoin Issuers Themselves from Offering Interest OR YIELD, IT DOOSN’T STOP The Issuers’ Affilites or Exchanges from Doing So indirectly. The Bankers Fear A Massive Loss of Deposits and Money-Market Fund Activity from the Resulting Rivalry Stablecoins Might Offer.

“Congress Must Protect the Flow of Credit to American Businesses and Families and the Stability of the MOST IMPORTANT FINANCAL Market by Closing The StableCoin Payement of Intertert, Aftert, The ABA, Bank Policy Institute, Financial Services Forum and others. Banks Turn Deposits Into Loans, SO the Lack of Deposits Threatens Necessary US Lending.

The Genius Act Was Signed Into Law by President Trump, But The Bigger and More Complex Legislation to Regulate US Crypto Markets is Still PENDING. That Future Bill, whoh already passed the House of Representatives As the Digital Asset Market Clarity Act, Could Still Overhaul Provisions of The StableCoin Law, Even Beng Is Financial regulators. That’s what the Bankers are advocating, the Alongside their Tempoury Customer-Advocate Allies.

Read More: Banks Must Adopt Crypto or ‘Be Extinct in 10 Years,’ Eric Trump Says

Jesse Hamilton

Jesse Hamilton is Coindesk’s DEPUTY Managing Editor On the Global Policy and Regulation Team, Based in Washington, DC Before Joinga Coindesk in 2022, He Worked For More Thon. News and Businessweek, Writing About the Early Whisperings Among Federal Agencies Trying to Decide What to Do About Crypto. He’s Won Several National Honors in His Reporting Career, Including from His Time As A War Correspondent in Iraq and As A Police Reporter for Newspapers. Jesse is a graduate of Western Washington University, WHERE HE STUDIED Journalism and History. He have no crypto holdings.

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Jesse Hamilton

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