🚨 STABLECOIN REWARDS UNDER FIRE — CRYPTO INDUSTRY PUSHES BACK 💥
A major policy battle is unfolding in Washington.
Over 125 crypto companies and industry groups, led by the Blockchain Association, have formally urged the U.S. Senate Banking Committee to reject an expanded ban on stablecoin rewards under the proposed GENIUS Act.
💰 What’s at Stake The proposal would: • Ban stablecoin issuers from sharing yield with users
• Extend restrictions to third-party platforms offering rewards
• Limit incentives tied to payment stablecoins
The industry warns this would crush innovation and concentrate power in the hands of a few large institutions.
🏦 Why Crypto Is Pushing Back The Blockchain Association argues: • Rewards are standard in finance (credit cards, bank accounts, loyalty programs)
• Blocking crypto incentives creates an uneven playing field
• Stablecoin rewards help users offset inflation
• There’s no clear evidence rewards harm banks or lending
They say banning rewards would slow adoption and weaken the competitiveness of U.S.-based crypto platforms.
⚖️ Banks vs Crypto While banks lobby against yield-bearing stablecoins, regulators like the FDIC are exploring frameworks that could allow banks to issue stablecoins via subsidiaries — raising concerns about regulatory favoritism.
📌 Big Picture This isn’t just about rewards — it’s about who controls the future of digital dollars: • Open crypto platforms
• Or closed, bank-dominated systems
The outcome could shape how stablecoins compete, innovate, and scale in the U.S.
The stablecoin debate is heating up — and the rules aren’t final yet. 👀🔥
