Crypto Quibbler

🔑   Key Takeaways U.S. banks lobby to block stablecoin interest policies, fearing   $6.6 trillion   in potential deposit flight. GENIUS Act bars banks from paying yield on their own stablecoins, but allows crypto exchanges to do so with third-party tokens. Treasury Secretary Scott Bessent highlights stablecoins as potential buyers of U.S. government debt. 🗞   Main Story The debate over stablecoins in the U.S. has escalated following the passage of the GENIUS Act. Banking lobby groups, including the American Bankers Association, argue that allowing interest-bearing stablecoins could lead to an unprecedented   deposit flight worth trillions of dollars . Their concern is that consumers, drawn to higher yields, would move savings from traditional accounts into stablecoins offered by exchanges such as Circle and Tether. Under the new framework, banks are explicitly prohibited from paying interest on stablecoins they issue, while crypto platforms face no such restri...