US crypto and banking sectors clash over GENIUS Act

The U.S. crypto industry is pushing back against efforts by the banking sector to amend a stablecoin bill known as the GENIUS Act, Cointelegraph reports. The Blockchain Association argued that large banks are attempting to undermine a bipartisan consensus and restrict fair competition. The association stated there is no evidence that stablecoin adoption harms traditional financial institutions, adding that while bank accounts tend to favor established interests, stablecoin rewards offer greater benefits to the general public. The group characterized the banking sector's opposition as an effort by incumbents to drive out competitors. The pushback follows a statement from the American Bankers Association (ABA) to the U.S. Senate. The ABA contended that the bill's provision for interest payments on stablecoins lacks clear regulations. It warned that this could shrink the pool of funds available for bank lending, potentially harming small and medium-sized businesses and households.