TechFlow news, August 20 — According to CoinDesk, crypto industry groups are strongly opposing Wall Street banks' proposed amendments to the U.S. GENIUS Stablecoin Bill. The Crypto Council for Innovation and the Blockchain Association sent a letter on August 19 to the Senate Banking Committee urging rejection of amendment proposals put forward by banking groups including the American Bankers Association.
Banks seek to remove Section 16(d) of the bill, which would allow state-chartered depository subsidiaries to support stablecoin issuance across state lines. Banking groups warn this could lead to regulatory arbitrage and potentially drain up to $6.6 trillion in deposits from the U.S. banking system.
The crypto industry counters that research shows no significant link between stablecoin adoption and outflows from community bank deposits, and that the majority of stablecoin reserves remain within the financial system. They emphasize that allowing stablecoin users to earn yield—especially when the average U.S. checking account pays only 0.07% annual interest—would ensure a level playing field, particularly for consumers underserved by traditional banks.
