Overview
- Banking trade groups are pressing Congress to reopen the GENIUS Act to block platforms from passing yield to stablecoin users.
- Brian Armstrong publicly rejected any move to revisit the law and called the banking campaign a wasted effort.
- He forecast that banks will later lobby to offer interest-bearing stablecoin features once competitive pressures mount.
- The GENIUS Act bars issuers from paying interest but allows intermediaries like exchanges to share Treasury-derived returns, which banks say challenge deposits by offering roughly 4% to 5%.
- A coalition of 125 crypto firms urged the Senate Banking Committee to keep the law intact, as lawmakers also circulate a tax discussion draft covering small payments and staking income.