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Stablecoin Regulation Raises Tensions with Banks
Blockchain Association CEO Summer Mersinger says banks are trying to create a regulatory moat to avoid competing with stablecoin issuers. Mersinger discusses why the Blockchain Association is launching a campaign to defend the Genius Act.
Crypto groups fight back
Crypto groups have fought back. On August 20, the Blockchain Association and the Crypto Council for Innovation sent their own letter urging regulators to resist bank pressure and disputing the $6.6 trillion claim. “This claim does not hold up to scrutiny,” the letter read.
Cutting off yield, they warned, would freeze innovation and leave U.S. firms at a disadvantage internationally. “Allowing responsible, robustly regulated platforms to share benefits with customers is not a loophole – it is a feature that promotes financial inclusion, fosters innovation, and ensures American leadership in the next generation of payments,” they said.
Still, Beeson said expectations for any near-term change to the law should be tempered. “I think realistically it’s less than a fifty percent chance,” he said, pointing to Washington’s legislative gridlock.
This article has been published in bloomberg.com via Yahoo News.
