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The banking industry calls for amendments to the GENIUS Act signed by Trump, citing potential financial risks.
On August 14, The Block reported that the largest banking association in the United States is urging senators to amend the so-called loopholes in the stablecoin bill signed by President Trump last month, claiming these loopholes could harm the broader financial system. This week, the American Bankers Association (ABA) and 52 other banking organizations sent a letter to the leadership of the Senate Banking Committee, proposing revisions to the "American Stablecoin Innovation and Establishment Act" (GENIUS). The letter pointed out that the bill has concerns regarding interest payments, state-level regulation, and the issuance of stablecoins by non-financial companies. The focus of the dispute is that the prohibition in the GENIUS bill against paying interest to holders of stablecoin is considered too lenient. Although these groups support restrictions, they believe the new law can easily be circumvented by exchanges, brokers, and other related parties, thereby "distorting market incentives" and transforming stablecoins from mere payment tools into potential stores of value and credit instruments.