Banks dey warn say GENIUS Act stablecoin yield gap fit drain $6.6T from U.S. deposits

Bank grup dem wey Bank Policy Institute (BPI) dey lead tell Congress say GENIUS Act 2025 get loophole wey fit make crypto platforms and their affiliated companies dey offer yield for stablecoins even though law talk say issuers no suppose pay interest. For one letter wey dem send on January 6, di coalition talk say exchanges fit channel rewards and yield through affiliated firms or programs, comot like 'shadow‑bank' competition wey fit make plenti deposits comot from US banks — industry estimate talk say possible outflows fit reach $6.6 trillion. Regulators and commentators dey argue say di law narrow — e dey target stablecoin issuers only and e no level playing field across payment systems; some people dey propose wider reforms like 'Clarity Act' to cover both traditional and digital payments. Market context: total stablecoin market cap near $318 billion (USDT ~ $187B, USDC ~ $75B with ~73% annual growth). Di groups warn say if dem close di yield loophole, e likely go make stablecoins return to payment‑only role and fit push existing stablecoin balances back to banks, wey fit get uncertain effect on credit availability. Di dispute na policy choice between keeping banking system stable and allowing crypto platforms compete as high‑yield options — outcome fit affect liquidity flows, funding costs and lending capacity for both banking and crypto sectors.