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US banks are intensifying efforts to amend the GENIUS Act, fearing massive deposit migrations to crypto platforms offering yields on stablecoins. Banking associations warn of a $6.6 trillion deposit flight risk if current rules remain unchanged. The clash has sparked a lobbying battle between traditional banks and crypto advocates in Washington.
- Banks warn the GENIUS Act could trigger $6.6 trillion in deposit outflows to crypto platforms offering stablecoin yields
- Crypto industry leaders accuse banks of 'rent-seeking' to protect their low-interest business models while making risky loans
- The conflict has sparked a major lobbying battle in Washington with banks seeking to ban crypto yields while crypto advocates defend the legislation as pro-competition
📎 Related coverage from: cryptopotato.com
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