{"id":541705,"date":"2026-01-14T16:52:54","date_gmt":"2026-01-14T16:52:54","guid":{"rendered":"https:\/\/e-bitco.in\/index.php\/2026\/01\/14\/why-us-community-banks-say-the-genius-act-has-a-stablecoin-loophole\/"},"modified":"2026-01-14T16:52:54","modified_gmt":"2026-01-14T16:52:54","slug":"why-us-community-banks-say-the-genius-act-has-a-stablecoin-loophole","status":"publish","type":"post","link":"https:\/\/e-bitco.in\/index.php\/2026\/01\/14\/why-us-community-banks-say-the-genius-act-has-a-stablecoin-loophole\/","title":{"rendered":"Why US community banks say the GENIUS Act has a stablecoin loophole"},"content":{"rendered":"

\"Why<\/p>\n

Banks argue that stablecoin rewards offered through exchanges exploit a GENIUS Act loophole, blurring the line between payment tokens and savings accounts.<\/p>\n

The GENIUS Act was designed to keep stablecoins as payment tools rather than savings products. As a result, it bans issuers from paying interest or yield to stablecoin holders.<\/p>\n

Community banks argue that a loophole exists because exchanges and affiliated partners can still offer rewards on stablecoin balances, even if the issuer itself does not pay yield.<\/p>\n

Smaller banks are more concerned than large banks because they rely heavily on local deposits. Any outflow of deposits could directly reduce lending to small businesses and households.<\/p>\n

Read more<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Banks argue that stablecoin rewards offered through exchanges exploit a GENIUS Act loophole, blurring the line between payment tokens and savings accounts. The GENIUS Act was designed to keep stablecoins as payment tools rather than savings products. As a result, it bans issuers from paying interest or yield to stablecoin holders. Community banks argue that […]<\/p>\n","protected":false},"author":1,"featured_media":541706,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":{"0":"post-541705","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-blockchain"},"_links":{"self":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/541705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/comments?post=541705"}],"version-history":[{"count":0,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/541705\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media\/541706"}],"wp:attachment":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media?parent=541705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/categories?post=541705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/tags?post=541705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}