{"id":58941,"date":"2026-01-08T09:56:28","date_gmt":"2026-01-08T02:56:28","guid":{"rendered":"https:\/\/hbbgroup.net\/genius-act-changes-would-be-a-national-security-trap-crypto-execs\/"},"modified":"2026-01-08T09:56:28","modified_gmt":"2026-01-08T02:56:28","slug":"genius-act-changes-would-be-a-national-security-trap-crypto-execs","status":"publish","type":"post","link":"https:\/\/hbbgroup.net\/zh\/genius-act-changes-would-be-a-national-security-trap-crypto-execs\/","title":{"rendered":"GENIUS Act changes would be a \u2018national security trap\u2019: Crypto execs"},"content":{"rendered":"
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The bank lobby\u2019s requested changes to the stablecoin-regulating GENIUS Act could undermine competition and weaken the US dollar\u2019s global position, crypto executives and industry groups have claimed.\u00a0<\/p>\n

Crypto advocacy group the Blockchain Association said<\/a> on Tuesday that a bid to lawmakers by a group of community bankers to ban issuers<\/a> from offering yield to tokenholders through third parties was \u201ca last-ditch effort by Big Banks to block competition after Congress struck a careful, bipartisan deal.\u201d\u00a0<\/p>\n

The GENIUS Act bans stablecoin issuers from offering interest or yield, but major crypto exchanges are still rewarding stablecoin holders, and community banks argued that closing the claimed loophole is crucial for protecting their lending abilities<\/a>.<\/p>\n

\u201cNo evidence\u201d stablecoin adoption will hurt banks<\/h2>\n

The Blockchain Association said there is \u201cno evidence of stablecoin adoption dismantling traditional financial institutions.\u201d\u00a0<\/p>\n

The Association said that while low-yield bank accounts primarily benefit \u201clarge incumbents,\u201d stablecoin rewards offer greater benefit to the everyday person.\u00a0<\/p>\n

\u201cNo new evidence. No new risks. Just incumbent pressure to shut out competition,\u201d the Blockchain Association said.<\/p>\n

Source: <\/em>Chad Steingraber<\/em><\/a><\/figcaption><\/figure>\n

Pro-crypto lawyer John Deaton said<\/a> on Wednesday that such a significant change to the legislation would be \u201ca national security trap,\u201d claiming it would incentivize the use of China\u2019s interest-bearing digital yuan.<\/p>\n

Related: <\/strong><\/em>Ray Dalio says 2026 US midterm elections could reverse Trump policies<\/strong><\/em><\/a><\/p>\n

\u201cThe stakes are higher than ever because China officially began paying interest on the Digital Yuan (e-CNY) – making it a \u2018yield-bearing\u2019 competitor to the USD,\u201d Deaton said.<\/p>\n