Large bank groups in the United States urge to change certain provisions of the recently approved genius Stablecoin Act, and mentions concern about aspects of the law that can affect the traditional financial sector.
Summary
- American banking groups lobbying by legislators to reconsider certain provisions of the Genius Stablecoin Act.
- Banks claim that the current structure creates an uneven playing field that could threaten the future of traditional financial institutions.
- Crypto industrial groups have reduced, which states that the provisions are a necessary function to support innovation and to maintain the choice of consumers.
On August 25, the Financial Times reported That American bank groups are actively lobbying for legislators to reconsider certain provisions of genius legislation.
Earlier in July, the Genius Act became the first official Stablecoin law in the United States, intended to regulate the market for billion dollars and to maintain the country’s dominance in the sector. Part of the Regulation prevents EXPENTEN from directly paying interest or vomiting to Stablecoin holders, a measure that is intended to protect the stability in the system.
This provision means that although banks can spend their own stablecoins, they are forbidden to offer any interest. Crypto exchanges, on the other hand, can still produce rewards to holders of third-party stablecoins, such as Circle’s USDC (USD Coin) or Tether (Tether). The groups describe this provision as a “Maas in the law” that indirectly promotes crypto exchanges about traditional banks, warning that customers can ask customers to move deposits from banks to platforms that offer a higher efficiency, creating an uneven playing field.
The groups mentioned an April Treasury report that estimated stablecoins that offer yield, could move no less than $ 6.6 trillion away from the traditional banking system, warning that such outflow could endanger the stability of the banking sector.
However, representatives of the Crypto industry have reportedly pushed back against the banks campaign, with the argument that the worries are exaggerated.
Crypto -Industrie Pushback: Genius Act “Maasstal” is not a mistake
Advocacy groups, including the Crypto Council for Innovation and the Blockchain Association, have argued that the “Maas in the brilliant law of the banks is not a mistake, but a necessary feature to maintain competition and innovation in the sector.
They claim that limiting exchanges of offering rewards to stablecoin holders would wrongly protect banks and at the same time limit the consumer’s choice. Industrial figures such as Coinbase’s Chief Legal Officer, Paul Grewal, have also condemned the concerns and emphasize that industry should be allowed to evolve without unnecessary restrictions.
The brilliant Stablecoin is celebrated as a milestone for the industry, which defends the long -awaited clarity for the activa class. However, the current dispute underlines the tensions as the rules take shape, which emphasizes the need for a careful balance to guarantee both innovation and stability.
