US Bankers Urge Congress To Close Stablecoin Yield Loophole Threatening $6.6 Trillion In Bank Deposits
US banks are urging Congress to close a stablecoin yield “loophole” that they warn could drain up to $6.6 trillion in deposits from the traditional banking system, potentially destabilizing credit flows to American businesses and households. The Bank Policy Institute (BPI), as well as the American Bankers Association, Consumer Bankers Association, the Financial Services Forum, and the Independent Community Banks of America all voiced their concerns in a letter to Congress yesterday. They expressed concerns about the current wording in the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. Signed into law on July 18, 2025, the Act establishes rules and regulations for stablecoin issuers to follow. The GENIUS Act is among the most transformative laws in decades.@Jerallaire, with @RichardQuest on @CNN, explains what this means for stablecoins. pic.twitter.com/BMLiwJix3Q — Circle (@circle) July 23, 2025 Among those rules is the proh...