Banking Groups Seek Changes to U.S. Stablecoin Law: Addressing Loopholes for Market Stability

Banking groups are pushing for amendments to the GENIUS Act, enacted in 2025, to address regulatory loopholes that could impact stablecoin issuers and consumer protection. Their concerns stem from potential market destabilization, with fears of regulatory arbitrage and the possibility of $6.6 trillion in deposit outflows if these loopholes remain unclosed.