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Bankers Sound Alarm Over Stablecoin Yields Threatening Traditional Deposits

Stablecoin Yields Threaten Bank Deposits

Dario Cesaro avatar
Written by Dario Cesaro
Updated over a week ago

U.S. community bankers are urging Congress to close a perceived loophole in the GENIUS Act, warning that crypto exchanges offering yields on stablecoins could siphon billions from traditional bank deposits. This practice, they argue, undermines community lending and shifts funds to less regulated platforms, potentially destabilizing the financial system.

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