The financial world is grappling with a critical issue raised by major banking groups: a significant loophole within the proposed GENIUS Act that could destabilize the traditional financial system. The Bank Policy Institute (BPI), representing prominent U.S. banks, has issued an urgent warning to Congress, highlighting how this loophole could allow stablecoin issuers to indirectly pay interest, potentially leading to trillions of dollars leaving traditional bank deposits. [Add a sentence about the need for action and potential consequences] The BPI’s concern stems from the current wording of the GENIUS Act allowing for these loopholes. They argue this is a structural flaw that could severely impact financial stability and economic growth.