Reported 2 days ago
The GENIUS Act restricts stablecoin issuers from paying interest directly, aiming to safeguard banks from losing deposits. However, this regulation inadvertently allows crypto exchanges and fintech companies to exploit a loophole, offering attractive yields to users. As a result, traditional banks face mounting pressure and warnings about potential significant deposit outflows due to the appealing returns generated by these new competitors, prompting discussions about the need for stricter regulations.
Source: YAHOO