American banks demand the ban on the stabilecoin, while the deposits pay almost nothing

Banks in the United States are lobbying to change new Stablecoin instructions under the Genius Act, for fear of massive deposit lifts while Crypto exchanges receive a competitive advantage when offering proceeds to customers.

The legislation, adopted in July, prohibits Stablecoin -Emitents, including banks, to pay interest directly to customers. However, crypto fairs that contain stablecoins, such as USDT and USDC, can offer yields and rewards on them.

Bank lobbies, such as the American Bankers Association, warned that this creates a ‘Maas in the law’. At the same time, banks, which traditionally offer much lower interest rates, fear that it creates a “uneven playing field”, ” according to to the financial time.

Deposit flow to Stablecoins

The representatives of the banking sector, referring to a report from April, claimed that Stablecoins could drain $ 6.6 trillion at bank deposits.

They warned of “a larger deposit risks, especially in times of stress, that credit creation will undermine the entire economy”, which could lead to “higher interest rates, fewer loans and increased costs for companies and households in the Hoofdstraat.”

In the weekend, polico reported That the financial world “runs in the direction of a lobbyed civil war in Washington.”

The bankers and lobbyists, who generally see crypto as a threat to their company, want to block all crypto areas to pay returns to customers who possess stablecoins, explained it. They also want to withdraw a part of the law that they say that “allows uninsured storage institutions to operate nationwide by the state without good supervision.”

The banks “want to keep it for themselves”, which “is” absolutely outrageous rent-seeking rent, “said crypto investor Ryan Sean Adams.

“Stablecoin output is from the people, not to banks.”

In the meantime, Bitwise Cio Matt Hougan saw the funny side and observed the meager interest rates that offer leading banks.

I think JPMorgan Chase is confused. Can someone tell him that the interest rule of 0% is only for stablecoins, not bank accounts? https://t.co/cxiuwjjmeb pic.twitter.com/oj8b1ZC3cc

– Matt Hougan (@Matt_Hougan) August 25, 2025

Crypto -Industrie Vecht back

Former commissioner of the Commodity Futures Trading Commission and the current Blockchain Association CEO, Summer Mersinger, noted on Monday that the genius law is ‘fixed law’.

“There was a robust debate on the hill, and the way in which this bill came out was a compromise of policy makers,”

“This was not a Maas in the law and you know,” wrote Coinbase Chief Legal Officer Paul Grewal on X in response to the bankers’ statement.

In the meantime, the Crypto Council for Innovation wrote that banks tried to create a “non -competitive payment blockage environment, to protect banks at the expense of broader growth, competition and consumer choice.”

Bending the requirements of banks would “tilt the playing field in favor of legacy institutions, in particular larger banks, who are routinely failing to achieve competitive returns and to deprive consumers of a meaningful choice,” the associations added.

Former Paxos consultant Austin Campbell said that banks were trying to paralyze “stabilecoins” so that they could stay,

“Pay 0% on deposits while you provide risky loans to commercial real estate billionaires, paying huge bonuses if it works and you keep the losses if this is not the case.”

A timely memory of why this is all important, because banks are starting to lobby to paralyze stablecoins so that they can stay:

1 – Pay 0% on deposits while you provide risky loans to commercial real estate billionaires, pay huge bonuses if it works and you hold … https://t.co/atv5jw5d4i

– Austin Campbell (@campbelljaustin) August 25, 2025