Banks Dey Push Stricter GENIUS Act, Dem Close Stablecoin Yield Gaps

Major US banking associations don dey beg Congress make dem tighten stablecoin regulation under the GENIUS Act. For one letter wey dem write go the Senate Banking Committee, dem talk say make dem put amendment to close all loopholes wey dey make digital asset exchanges and their affiliates fit offer yield products on payment stablecoins. According to the current rules, stablecoin issuers no suppose pay interest, but the middle men fit waka side-step the ban. Banks dey warn say this one fit make deposits comot from traditional credit intermediation go higher-yield stablecoins, wey fit spoil financial stability and credit supply. To fix this problem, dem propose say make the interest ban cover exchanges and brokers, make dem comot non-financial issuer exemptions, and make state oversight strong well well. Dem also talk say make dem repeal the parts wey allow out-of-state chartered institutions to operate without host-state approval. These reforms go make sure say stablecoin regulation go protect banks role for credit creation and make stablecoins remain payment instruments, so market stability fit dey safe.