The cryptography industry rises a counter-offensive against the attempt of the bankers of Wall Street to rewrite the American law on the new stablecoin, arguing that trying to find the main provisions of the purchase and the establishment of national innovation for the American stablecoins (GENIUS) The act would incline the field towards traditional banks.
In a letter to the leaders of the senatorial banking committee dated August 19, the Crypto Council for Innovation and the Blockchain Association urged the legislators to reject the proposals of the American Bankers Association, the Bank Policy Institute and the state banking groups which called for the abolition of article 16(d) the law and the prohibition of yield programs offered by affiliates of stablecoin issuers.
Section 16(d) Allows the subsidiaries of the state -tiling institutions to carry out money transmission through the state lines to support the activities of stable issuers, ensuring that holders can buy their tokens at the national level without the need for separate state licenses.
Banking groups warned earlier this month than the authorization of the institutions not guaranteed and not ensured by the State to issue stalins and operate on a national level would be equivalent to regulatory arbitration, by bypassing state license regimes, Coindesk reported earlier.
They also argued that the law contains an escape by prohibiting issuers themselves from providing interests, but not from preventing affiliates or exchanges from doing so, which they say, could drain up to 6.6 billions of dollars of deposits of the American banking system.
The letter of August 19, crypto groups rejected these fears not supported by the data observed. Citing a July 2025 study by Charles River Associates, the groups said that there was no statistically significant link between the adoption of stablescoin and the deposits outings of the community bank.
Instead, they stressed that most of the Stablecoin reserves remain within the financial system in commercial banks and treasury securities, continuing to support loans.
They also argued that the authorization of affiliates to share awards with stablecoin users provides fair competition, especially for sub-banking consumers who are poorly served by traditional banks.
Currently, the average American check account pays only 0.07% APY, well below inflation, while the benchmark interest rate of the federal reserve is 4.25% to 4.50%.
“The elimination of these features for stablecoin users, while allowing them in the banking sector, would incline the rules of the game in favor of inherited institutions,” the groups wrote.
The law on engineering is the law, but the law on the clarity of the digital asset market, a broader framework of the cryptographic markets already adopted by the Chamber and currently in the Senate, could always reshape the policy of Stablecoin before regulators write rules of implementation.
Bankers seized this process to push their agenda, while cryptographic groups lobby to keep the law intact.
The Republican Tim Scott of South Carolina, the president of the Senate bank, said this week that he expects the bill to be finalized by the end of September and believes that 18 democrats can vote for this. However, he recognized the possibility of resistance of senator Elizabeth Warren, a democrat of Massachusetts and his allies.
Whatever the emerging version should be reconciled with the law on the clarity of the digital asset market of the Chamber and could provide the bankers to open stablecoin provisions before starting to write rules.
