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Stock impact report

Hundreds of Crypto Firms Slam US Bank's Lobby to Prohibit Stablecoin Yields [Yahoo! Finance]

Coinbase Global, Inc. - Class A (COIN) 
US:NASDAQ Investor Relations: convertedorganic.com
Company Research Source: Yahoo! Finance
The group includes major crypto firms such as Coinbase, Gemini, and Kraken. The move escalates a high-stakes battle over who has the right to pay interest on stablecoin deposits. The main bone of contention is that the GENIUS Act explicitly prohibits stablecoin issuers like Tether from paying dividends. However, there is currently a loophole that allows third-party platforms, such as crypto exchanges, to pass this stablecoin yield on to users. As a result, traditional banking groups are aggressively lobbying to close this avenue, arguing that it constitutes regulatory arbitrage. The banking lobby contends that if unregulated fintech platforms are allowed to offer high yields on cash-equivalent tokens, it poses a systemic risk to the traditional financial architecture. In briefings with Capitol Hill, they warned that preserving the current rules could trigger a massive capital flight. They estimated potential deposit outflows of up to $6.6 trillion from commercial banks to Show less Read more
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