The US Banking Alliance is urging lawmakers to revise the GENIUS Act, warning that unregulated stablecoin yields could result in trillions in deposit outflows from traditional banks.
The US Banking Alliance cautioned that the GENIUS Act could trigger a $6.6 trillion outflow of bank deposits to the stablecoin market. The group highlights regulatory gaps, particularly the failure to restrict exchanges from offering yield on stablecoins, which could lead to significant competition for traditional banks.