More than 125 organizations and corporations are pressing Congress to lift stablecoin rewards, warning that reinterpreting the GENIUS Act would limit individual need, weaken competition, and unravel a onerous-won regulatory steadiness.
Change Coalition Defends Stablecoin Rewards Beneath GENIUS Act
A coalition of digital asset and fintech groups moved to hotfoot off doable limits on stablecoin incentives. The Blockchain Association, a Washington-basically basically based commerce organization representing crypto and blockchain corporations, sent a letter on Dec. 18 warning Congress against proposed efforts to reinterpret the GENIUS Act’s stablecoin reward provisions.
Lindsay Fraser, chief coverage officer at Blockchain Association, shared on social media platform X: “125+ organizations and corporations are aligned: rolling wait on upright stablecoin rewards would grab money out of clients’ pockets, decrease need, and suppress competition. Congress settled this tradeoff all the draw thru the GENIUS path of—and patrons grab pleasure within the implementation of the legislation as written.”
The letter, addressed to Senate Banking Committee Chairman Tim Scott and Rating Member Elizabeth Warren, states:
We, the undersigned organizations and corporations, write to oppose efforts to reinterpret and magnify the GENIUS Act’s prohibition on hobby or yield past what Congress enacted.
“Proposals to limit or restrict rewards or incentives equipped by platforms or other third events in secondary markets would reopen a settled wretchedness, undermine a fastidiously negotiated compromise, decrease individual need, suppress competition, and inject uncertainty into the implementation of a peculiar legislation earlier than regulations receive even been proposed,” the letter continues.
The coalition detailed that Congress deliberately prohibited stablecoin issuers from paying hobby while conserving the flexibility of platforms, intermediaries, and other third events to assemble upright rewards capabilities. That distinction, the signatories outlined, was once supposed to mitigate steadiness-sheet and maturity-transformation issues connected with issuance while permitting innovation on the appliance layer. The letter extra argues that limiting rewards would unfairly drawback stablecoin funds in contrast with weak card-basically basically based systems, where banks mechanically offer incentives despite taking part in lending actions that blueprint better structural likelihood.
Signatories included predominant commerce groups and corporations such because the Crypto Council for Innovation, the American Fintech Council, the Bitcoin Policy Institute, a16z Crypto, Coinbase, Ripple, Kraken, Gemini, Paxos, Stripe, Paypal, and the Solana Policy Institute, alongside dozens of regional blockchain associations and advocacy organizations.
In its closing arguments, the coalition wired the individual and aggressive consequences of revisiting the GENIUS framework and highlighted the breadth of industry reinforce on the wait on of its residing. The letter urges:
We streak Congress to reject any effort—whether in market building legislation or someplace else—to limit or restrict upright rewards equipped by platforms or other third events in accordance to GENIUS.
“Maintaining the steadiness Congress struck is predominant to protecting patrons, fostering competition, and ensuring that market building legislation can strategy on a bipartisan and durable basis, in residing of fixing into a automobile for entrenching legacy interests on the expense of innovation,” the letter stresses.
The coalition additionally referenced exterior compare discovering no proof that stablecoin adoption has driven disproportionate deposit outflows from team banks and pointed to the mountainous volume of reserves already held by banks on the Federal Reserve. Supporters rep that price stablecoins, providing faster settlement, decrease transaction prices, and transparency, can magnify individual need while working within the regulatory boundaries Congress has already established.
