Stablecoins are changing how we think about money in the digital world. They stay steady by tying their value to real-world assets like the US dollar. Enter the GENIUS Act, a US law targeting stablecoin rules. It bans issuers from paying direct interest to holders.
Platforms like Coinbase and Kraken offer rewards through third-party deals. Holders earn yields indirectly, pulling cash from traditional banks. A group of US community banks – small, local lenders – is fighting back. They want Congress to fix this “loophole.”
Their fear? Billions in deposits fleeing to stablecoins, starving loans for farmers, students, homebuyers, and small shops. Community banks serve heartland America. Losing funds could cripple local economies. Small and medium enterprises (SMEs) love stablecoins for payroll and supplier payments.
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