Members of the U.S. Congress are debating whether stablecoin rewards could trigger bank deposit outflows. Senator Angela Alsobrooks( expressed concerns about similar bank-like products lacking safeguards. Although the GENIUS Act prohibits issuers from paying direct interest, third-party platforms like Coinbase can still offer rewards. Banking industry groups warn that deposits could decrease significantly, but cryptocurrency advocates and some senators dispute this risk, citing deposit growth data following the implementation of the GENIUS Act. Federal regulators, including the Office of the Comptroller of the Currency)OCC(, are pushing forward with rules related to the implementation of the stablecoin legislation.
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Members of the U.S. Congress are debating whether stablecoin rewards could trigger bank deposit outflows. Senator Angela Alsobrooks( expressed concerns about similar bank-like products lacking safeguards. Although the GENIUS Act prohibits issuers from paying direct interest, third-party platforms like Coinbase can still offer rewards. Banking industry groups warn that deposits could decrease significantly, but cryptocurrency advocates and some senators dispute this risk, citing deposit growth data following the implementation of the GENIUS Act. Federal regulators, including the Office of the Comptroller of the Currency)OCC(, are pushing forward with rules related to the implementation of the stablecoin legislation.