Stablecoins dey exploit GENIUS Act loopholes to offer rewards

Plenty big stablecoin companies don sidestep new restriction inside U.S. GENIUS Act by launching reward programs wey dey bypass law wey no gree interest-bearing business. Under GENIUS Act, stablecoin companies gats keep reserves wit qualified custodians plus dem no fit market interest-like returns. But companies like Tether (USDT), Circle’s USDC, Paxos (USDP), and Gemini Dollar (GUSD) dey call their yield offers “rebates” or “promotional fees,” make dem fit pay up to 5% yearly rewards through DeFi partnerships and affiliate programs. These loopholes dey use gaps for how the Act define “interest,” conveert traditional yield into marketing incentives. Regulators don warn say dem go watch well well and fit tighten definitions plus close loopholes for future rules. Since dem start for middle 2023, stablecoin supply don rise pass 10%, partially because of these attractive rewards. Traders suppose dey watch for policy updates wey fit affect how stablecoin move and DeFi liquidity. For short term, reward programs fit boost stablecoin demand and market action, but for long term regulatory moves fit reduce yields and change how issuers dey plan.