Crypto Industry Pushes Back Against Stablecoin Reward Ban

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The letter opposes efforts to stop crypto platforms from sharing yield with customers. Source: The Blockchain Association

The Blockchain Association has urged US lawmakers to reject proposals that would ban third-party platforms from offering rewards to stablecoin users. In a letter to the Senate Banking Committee signed by more than 125 crypto firms and industry groups, the association warned that expanding restrictions under the GENIUS Act would stifle innovation and increase market concentration.

The group argued that stablecoin rewards function similarly to credit card points or bank incentives and that banning them would give traditional financial institutions an unfair competitive advantage.