Odaily Planet Daily reports that several senior executives in the crypto industry and advocacy organizations warn that modifying the stablecoin regulatory framework “GENIUS Act” according to banking lobby demands—specifically restricting third-party yield offerings to stablecoin holders—could weaken the United States’ competitiveness in the global financial system and even constitute a “national security trap.”
Crypto advocate lawyer John Deaton stated that banning stablecoin yield mechanisms might instead encourage the market to shift toward China’s interest-bearing digital renminbi, thereby undermining the dollar’s position. The crypto industry organization Blockchain Association pointed out that there is currently no evidence that the development of stablecoins will disrupt the traditional banking system; such modifications seem more like a blocking move by large banks after reaching a bipartisan consensus.
Paradigm Vice President of Government Affairs Alexander Grieve also warned that overturning existing reward arrangements would waste legislative progress. Meanwhile, Galaxy Digital CEO Mike Novogratz bluntly stated that it would be a mistake for the U.S. to withdraw relevant regulations due to industry pressure. (Cointelegraph)
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