A potential loophole in the recently passed GENIUS Act could leave billions of dollars vulnerable as crypto firms offer interest-like rewards on stablecoins, potentially disrupting the US banking system. The American Bankers Association and Bank Policy Institute warn that this regulatory ambiguity allows cryptocurrency exchanges to operate with a significant advantage over traditional banks. Banks are concerned about the prospect of a massive shift in deposits as consumers seek higher returns from crypto platforms, even if those programs appear indirect, which could destabilize the entire financial sector. They are urging Congress to amend the GENIUS Act and solidify regulatory standards, ensuring that any activity resembling interest-bearing services is tightly controlled. This concern raises the question of balancing crypto innovation with financial stability as lawmakers try to navigate the changing landscape of digital finance.