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Treasury’s Stablecoin Rules Face Industry–Bank Split as Fed Flags Monetary Policy Stakes

A Federal Reserve governor said rapid stablecoin growth could lower the economy’s neutral rate, elevating the consequences of how Treasury finalizes the GENIUS Act framework.

Overview

  • Treasurey’s advance notice on the GENIUS Act drew sharply divergent comments, with crypto firms, banks, and state regulators urging conflicting interpretations.
  • Coinbase urged a narrow scope that excludes software developers and validators, asked that payment stablecoins be treated as cash equivalents, and argued third‑party rewards are not prohibited issuer interest.
  • Banks including the American Bankers Association and Bank Policy Institute pressed for a broad reading that blocks yield in any issuer‑related channel and closes perceived loopholes.
  • State regulators at CSBS requested joint federal‑state guidance on tokenized deposits and cautioned against permissive readings that let federal stablecoin issuers assume wider digital‑asset roles.
  • Fed Governor Stephan Miran cited staff projections of $1–3 trillion in stablecoin uptake by decade’s end and said increased demand for Treasuries could push down r‑star, implying lower policy rates than otherwise.