US Banking Groups Call for Stablecoin Yield Loophole Closure

Several prominent US banking organizations, including the Bank Policy Institute (BPI), have urged regulators to close a loophole within the new GENIUS Act that could allow stablecoin issuers to generate interest on their tokens. The groups argue this loophole poses risks to American businesses and families by potentially triggering $6.6 trillion in deposit outflows from traditional banking systems.