Summary
- The American Bankers Association (ABA) pointed out that the GENIUS Act has unclear regulations regarding stablecoin interest payments.
- The ABA argued that if stablecoins function as a deposit substitute, banks' lending resources could be constrained.
- The ABA said a reduction in banks' lending capacity could negatively affect the real economy, and that it has again called on the Senate for legislative fixes.
The U.S. banking sector again issued a warning to the Senate, saying institutional gaps in the GENIUS Act, a stablecoin regulatory bill, need to be addressed.
On the 6th (local time), according to crypto asset (cryptocurrency) specialized media The Block, the American Bankers Association (ABA) recently sent a letter to the U.S. Senate, pointing out that the GENIUS Act's provisions related to stablecoin interest payments are unclear.
In the letter, the ABA said, "The stablecoin bill passed last summer does not provide clear regulatory standards regarding interest payments," and argued, "As a result, if stablecoins effectively function as a deposit substitute, banks' lending resources could be constrained."
It added, "If banks' lending capacity decreases, negative effects could spread to small businesses, the agricultural sector, and households overall," warning that regulatory gaps could spill over into the real economy.
The ABA had previously pointed out that stablecoin issuance structures and interest provision methods could conflict with the existing financial system, and through this letter reaffirmed its position that the Senate should undertake additional legislative fixes.
