U.S. Bank Policy Institute urges fix to GENIUS Act’s stablecoin yield loophole

The Bank Policy Institute (BPI), along with several other U.S. banking groups, has urged Congress to close a loophole in the GENIUS Act that could let stablecoin issuers pay interest through exchanges or affiliated companies. According to Cointelegraph, in a letter to lawmakers, BPI warned this loophole could cause up to $6.6 trillion to flow out of traditional bank deposits. The group also stressed that payment stablecoins should not pay interest like bank deposits or money market funds do.