U.S. Banks Warn GENIUS Act Could Fuel $6.6T Deposit Outflows

Significant American banking organisations, such as the Bank Policy Institute and the American Bankers Association, are raising concerns about the recently enacted GENIUS Act. They worry that a legal loophole would allow cryptocurrency exchanges to lure money away from banks by covertly offering stablecoin rewards that resemble interest. The organisations caution that this might deplete deposits of up to $6.6 trillion, posing new threats to the financial system. Politicians are now under pressure to review and strengthen the law.