Two of the leading invitation bodies in the encryption industry belong to the last attempt by Wall Street for the decline in the newly populated Stablecoin.
In a joint letter To the Senate Banking Committee on Tuesday, the CCI and the legislator’s Blockchain Association urged the Refusing of the recommendations from the American Banking Association (ABA) and government banking groups.
As it was mentioned, many American banking groups, led by the BPI, urged Congress to tighten the law of genius by closing what they call a loophole that could allow Stablecoin and their subsidiaries to pay the yield indirectly.
In a message sent last Tuesday, the groups warned that failure to treat the gap could drain up to 6.6 trillion dollars of traditional banking deposits, threatening the flow of credit to families and companies.
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Stablecoin
Bankers also argued that although the genius law prevents the Stablecoin themselves from providing the return, it does not explicitly prevent exchanges or subsidiaries from doing this on their behalf. They claimed that these risks give Stablecoins a competitive advantage by attracting users with returns similar to savings accounts, without being subjected to the same banking bases.
The coding groups accused the banking lobby of trying to re -connect the issues that were already settled in months of negotiations, warning that the proposed reviews will tend to the field towards traditional banks while strangling innovation and choosing the consumer.
“The paid payments are not banking deposits, money market funds, or investment products, and therefore they are not organized in the same way,” wrote the invitation groups for encryption. “In contrast to banking deposits, Stablecoins is not used to pay for loan financing,” they added.
The letter referred to Article 16 (d) of the law, which allows the companies of the state -recovered institutions to conduct stablecoin work through state lines without the need for additional licenses.
Banking groups want to cancel the item, but CCI and Blockchain association have argued that the disposal of this would re -establish “the same fragmented regulatory system, the Balkan that strangles trade between states.”
They also pushed back against allegations that the organization’s standoins can drain the sediments from community banks. They cited the July 2025 analysis by Charles River Associats, which did not find any significant link between Stablecoin’s growth and bank flows.
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The return on Stablecoins cross $ 800 million in batches
Stablecoins, which carries the return of the return, distributed more than $ 800 million in total revenues to holders so far, According to To a modern post by stablewatch. Over the past thirty days, Ethena Staked Usde (SusDE) has led $ 30.71 million payments, followed by SECURITIZE at $ 8.39 million and Sky Ecosystem Usde (SusDE) with a value of $ 6.78 million.
The total market value of Stablecoins is currently at $ 288 billion, and it is a small part of the US dollar cash offer, which is the Federal Reserve I mentioned Also, 22 trillion dollars at the end of June.
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The post Crypto Groups Push Back on Bank Lobby Over GENIUS Act first appeared on Investorempires.com.
