U.S. Senators Get 250K Letters Calling for Protection of Stablecoin Yields

Core Viewpoint - The crypto group Stand With Crypto is mobilizing its members to advocate against banking lobbyists' attempts to limit stablecoin rewards through the GENIUS Act, which aims to protect consumer interests in the crypto space [1][2][3]. Group 1: Advocacy and Legislative Actions - Stand With Crypto has successfully engaged over 250,000 messages sent to U.S. senators, opposing the banking sector's efforts to restrict stablecoin issuers from offering yields [1]. - The organization emphasizes that a ban on rewards would hinder consumers from earning value on fully backed digital dollars, contrasting this with banks' protection of their credit card rewards [3]. - The GENIUS Act, which has been enacted, prohibits stablecoin issuers from directly offering interest or yield, but allows affiliates and exchanges to do so, leading to concerns from bankers about potential deposit losses [3][4]. Group 2: Responses from Financial Institutions - Major banking groups, including the American Bankers Association and others, argue that closing the stablecoin interest loophole is essential for maintaining credit flow and financial market stability [4]. - The banking sector's lobbying efforts are aimed at rewriting the law to eliminate stablecoin issuers' ability to provide yields, which they believe could disrupt traditional banking operations [2][4]. Group 3: Regulatory Environment - The U.S. Treasury Department and financial regulators are in the process of implementing the stablecoin law, but their efforts are currently hindered by a government shutdown due to budgetary issues [5]. - Stand With Crypto has reported a significant membership growth, with over 2.7 million crypto enthusiasts joining the organization, indicating strong grassroots support for the pro-crypto agenda [5].