The Bank Policy Institute has called on Congress to address a loophole in the GENIUS Act that allows stablecoins to offer interest, potentially leading to a flight of deposits from traditional banks. The institute argues that this loophole could undermine the stability of the banking system by incentivizing customers to move their funds to stablecoins offering higher returns. The call for legislative action highlights concerns over the growing influence of stablecoins in the financial sector.
Bank Policy Institute Calls for Closure of GENIUS Act Stablecoin Loophole
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