Overview

• Blockchain Association and Crypto Council for Innovation told the Senate Banking Committee to reject bankers’ requests to revise the GENIUS Act, calling the effort an attempt to relitigate negotiated provisions.
• Banking associations last week urged senators to extend the law’s ban on issuer-paid interest to exchanges and affiliates and to close an alleged “interest loophole.”
• Banks also pressed to repeal the law’s nationwide permission for uninsured state‑chartered stablecoin issuers, which crypto groups say is needed to protect cross‑state redemption rights.
• The crypto letter disputes a Treasury-cited projection of $6.6 trillion in potential bank deposit outflows to stablecoins and cites analysis finding no significant impact on deposits to date.
• The GENIUS Act, signed last month, requires one‑to‑one reserves and bars issuer‑paid interest while allowing third parties to offer rewards, and its fate could be revisited in the Senate’s market‑structure bill this fall.