The US Banking Industry Calls for Amendment to the <i>GENIUS Act</i> Signed by Trump, Citing Potential Financial Risks

BlockBeats News, August 14th, according to The Block, the largest banking association in the United States is urging senators to fix what it calls loopholes in the stablecoin bill signed by President Trump last month, saying these loopholes could harm the broader financial system.

This week, the American Bankers Association (ABA) and 52 other banking industry organizations sent a letter to the Senate Banking Committee leadership proposing revisions to the "Guidance and Examining Nonbank Innovation in the United States Act" (GENIUS). The letter points out concerns in areas such as interest payments, state-level regulation, and non-financial company issuance of stablecoins.

The controversy lies in the fact that the GENIUS bill's ban on stablecoin issuers paying interest to holders is seen as too lenient. While these groups support the restriction, they argue that the new bill could be easily circumvented by exchanges, brokers, and other affiliates, thereby "distorting market incentives," transforming stablecoins from mere payment tools into potential stores of value and credit instruments.