Regulatory Loophole

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The GENIUS Act Banned Yield on Stablecoins– But Banks Are Still Losing Against The Competition
Yahoo Finance· 2025-10-06 21:12
genius act. Photo by BeInCrypto The GENIUS Act includes a key rule that bars stablecoin issuers from paying interest directly to holders. While this provision was likely intended to protect banks from losing deposits, it has unintentionally created a highly profitable regulatory loophole. The rule carves out a business opportunity for crypto exchanges and fintech distributors. They can now capture this yield and turn it into a powerful engine for innovation. Bypassing the Stablecoin Yield Ban A key featu ...