Overview

• The American Bankers Association, Bank Policy Institute and Consumer Bankers Association are lobbying to amend the GENIUS Act to block what they call a loophole allowing exchanges to indirectly pay rewards on third‑party stablecoins.
• The statute prohibits issuer‑paid interest, and banks argue exchange rewards would tilt the market against bank‑issued tokens by offering yield‑like benefits outside the ban.
• Treasury’s April analysis estimated up to $6.6 trillion in bank deposits could migrate if customers pursue higher returns through stablecoins and related reward programs.
• Crypto industry groups and executives, including Coinbase’s Paul Grewal, say the provision is deliberate and pro‑competitive, disputing claims that it undermines the law’s intent.
• Treasury launched a 60‑day public comment process on illicit‑finance detection for digital assets, seeking input on APIs, AI, digital identity and blockchain monitoring, with comments due Oct. 17.