Banking lobby fights to change GENIUS Act: Is it too late?
The Banking Policy Institute wants lawmakers to further fine-tune the GENIUS Act to prevent any possibility of interest-bearing stablecoins.
The US banking lobby isn’t keen on interest-bearing stablecoins or their supposed challenge to financial systems — but it may be too late to amend these “loopholes” in the GENIUS Act.
The Banking Policy Institute (BPI), an advocacy group for the banking industry led by JPMorgan CEO Jamie Dimon, wrote a letter to Congress last week, arguing that stablecoins present a risk to existing credit systems.
The BPI urged regulators to close supposed loopholes in the GENIUS Act, a new law regulating the stablecoin industry in the US, lest a shift from bank deposits increase lending costs and reduce loans to businesses.