Crypto Leaders Engage in High-Stakes Battle with Banks Over GENIUS Act

The GENIUS Act, signed into law last July by President Donald Trump, has been at the center of a heated lobbying battle between banks and crypto leaders. At issue is a provision that allows stablecoin issuers to pass yield on to customers through third-party platforms.

Banks have been pushing for a ban on this practice, arguing it would prevent potential losses of up to $6.6 trillion in deposit outflows. However, crypto leaders see this as an attempt to restrict competition and stifle innovation in the industry.

President Trump has waded into the fray, accusing banks of sabotaging his crypto agenda and calling on Congress to pass the CLARITY Act without delay. This act aims to clarify regulatory jurisdiction over the industry and is seen as crucial for unlocking large-scale institutional participation in digital assets.