US Banks Urge Senate to Close GENIUS Act Loophole

rugged_again · 2026-01-07T07:20:31+00:00

US community banks are urging the Senate to close a loophole in the GENIUS Act, which may be exploited by crypto firms and impact stablecoin regulation. This effort aims to enhance banking stability and mitigate market volatility.

rugged_again

2026-01-07 07:20:31

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Source: Bitcoininfonews Original Title: US Banks Urge Senate to Close GENIUS Act Loophole Original Link:

What to Know

US community banks campaign to close GENIUS Act loophole.
Banks urge Senate to protect economies.
Regulatory closure may affect stablecoin oversight.

US community banks are rallying for Senate action to tighten the GENIUS Act, aiming to close a loophole allegedly exploited by crypto firms, affecting stablecoin oversight.

This push highlights growing concerns over stablecoin influence on banking stability and regulatory pressure against digital currencies, with potential shifts in asset regulation and market dynamics.

US Banks Push to Enhance GENIUS Act Efficacy

The American Bankers Association and others are advocating to close a regulatory loophole in the GENIUS Act. This act was designed to oversee stablecoins, but exceptions allegedly challenge its effectiveness.

The campaign has garnered support from influential groups such as the Bank Policy Institute, representing community banks nationwide. They are urging legislative action to prevent market instability.

Stablecoin Regulation Faces Legislative Pressure

The campaign’s immediate effect is significant pressure on legislation concerning digital assets like stablecoins. This shift could alter regulatory approaches to these instruments.

The financial implications may involve regulatory tightening, potentially limiting stablecoin yields. Such measures aim to protect traditional banking structures from market volatility.

GENIUS Act: A Flawed Framework Under Scrutiny

Previous initiatives to regulate crypto assets have seen mixed outcomes. The GENIUS Act represents a pioneering framework, yet its effectiveness is under scrutiny due to perceived loopholes.

Based on past trends, the campaign might drive tightened regulations and potentially prevent erosion of traditional banking’s role by stabilizing the market ahead of future updates.

“The GENIUS Act is a major legislative achievement that, if implemented effectively, can strengthen America’s financial competitiveness” – American Bankers Association (ABA), Community Bankers Council

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HodlOrRegret

· 5h ago

Coming back with this again? Banks are eager to plug the loopholes, honestly because they're afraid stablecoins will steal their business...

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governance_lurker

· 11h ago

Here we go again, the banks want to close the loopholes... Really? Who is really protecting whom?

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DaoGovernanceOfficer

· 01-07 07:49

lol, so banks crying about loopholes now? empirically speaking, this is just regulatory arbitrage theater. they're scared of losing control over payment rails, and the data suggests stablecoin enforcement is their real endgame here.

Reply0

HashRatePhilosopher

· 01-07 07:45

The banks are causing trouble again, always thinking about how to choke us.

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GasFeeAssassin

· 01-07 07:35

Here we go again. The bank guys are always trying to patch holes; why don't they think about their own vulnerabilities...

View OriginalReply0