Crypto Groups Stand Against Banks' Efforts to Relitigate Stablecoin Legislation
Wednesday, 20 August 2025, 14:45
Crypto Groups Continue to Push Back Against Banks
Crypto groups are accusing banks of attempting to relitigate key aspects of the stablecoin law signed by President Trump.
Recent Developments from Crypto Groups
- The Crypto Council for Innovation (CCI) and Blockchain Association have expressed concerns in a letter to the Senate Banking Committee.
- They emphasize that the matters in contention were thoroughly debated and settled during the law’s formation.
The Banks' Concerns
The American Bankers Association is advocating for amendments that would restrict interest payments on stablecoins.
- They argue this could otherwise be circumvented by crypto exchanges providing rewards to stablecoin holders.
- They also caution against the potential implications of stablecoins on the banking sector's stability.
The Response from Crypto Sector
In defiance of bank claims, crypto groups cite analyses suggesting stablecoin adoption has had little effect on bank deposits.
- They believe that providing rewards would enhance competition within the industry.
- Contentions also include state authority limitations outlined in the GENIUS Act that could affect nonbank financial institutions.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.