US Banking Industry Calls for Amendments to the GENIUS Act Signed by Trump, Citing Potential Financial Risks

BlockBeats News, August 14 — According to The Block, the largest banking association in the United States is urging senators to address so-called loopholes in the stablecoin bill signed into law by President Trump last month, warning that these gaps could undermine the broader financial system.

This week, the American Bankers Association (ABA), along with 52 other banking organizations, sent a letter to the leadership of the Senate Banking Committee, proposing amendments to the “Guiding and Enabling National Innovation in U.S. Stablecoins Act” (GENIUS). The letter highlighted concerns regarding interest payments, state-level regulation, and the issuance of stablecoins by non-financial companies.

The main point of contention is that the GENIUS Act’s ban on stablecoin issuers paying interest to holders is considered too lenient. While these groups support certain restrictions, they argue that the new law can be easily circumvented by exchanges, brokers, and other related parties, thereby “distorting market incentives” and transforming stablecoins from simple payment tools into potential stores of value and credit instruments.