Banks Warn Stablecoin Rewards Could Drain Trillions From Deposits

[johnblockbuster]

According to community bankers, platforms like Coinbase and Kraken offering rewards on stablecoin holdings undermine the spirit of the GENIUS Act. While the issuers themselves may not pay interest directly, the bankers argue that the economic effect is the same for consumers.

This concern echoes earlier warnings from the Banking Policy Institute, led by Jamie Dimon, which estimated that unchecked stablecoin growth could trigger up to $6.6 trillion in deposit outflows. Bank advocates say affiliates of stablecoin issuers are not built to replace regulated lending or insured financial products.

[lingriiddd]

calling it “not interest” while users still get paid feels like pure semantics