Stablecoins: Congress Just Can’t Leave Well Enough Alone! 😲

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Now, look here. More than 125 organizations and companies – a right proper swarm, I tell you – are a-fussin’ at Congress, beggin’ ‘em not to go and meddle with these here stablecoin rewards. They claim that if Congress starts reinterpretin’ this GENIUS Act, it’ll limit folks’ choices, stifle competition-and generally unravel a compromise that took some considerable effort to achieve. Human nature, I suppose; always wantin’ to tinker with things that are workin’ just fine.

Industry Folks Scuffle Over Stablecoin Perks Under the GENIUS Act

A whole passel of digital asset and fintech groups are tryin’ to head off any restrictions on these stablecoin incentives. The Blockchain Association, a Washington-based trade organization representin’ crypto and blockchain enterprises, dispatched a letter on the 18th of December warnin’ Congress against revisitin’ the GENIUS Act’s stablecoin reward provisions. Seems they’re fearin’ a second helping of trouble.

Lindsay Fraser, a high-falutin’ policy officer at the Blockchain Association, shared on that newfangled platform X: “Over 125 organizations and companies agree: messin’ with lawful stablecoin rewards will drain the pockets of ordinary folks, limit their options, and squash competition. Congress settled this matter during the GENIUS Act proceedings-and consumers are benefiting, as the law intends!”

The letter, addressed to Senator Tim Scott and Ms. Elizabeth Warren, states:

We, the undersigned, are writin’ to oppose any attempt to reinterpret and expand the GENIUS Act’s prohibition on interest beyond what Congress actually enacted.

“Any proposal to limit or forbid rewards or incentives offered by platforms would reopen a settled debate, undermine a carefully crafted compromise, reduce consumer choice, suppress competition, and create uncertainty before the regulations are even proposed,” the letter continues. A right pickle, indeed!

The coalition explains that Congress deliberately prevented stablecoin issuers from payin’ interest, but allowed platforms to offer lawful rewards programs. This, they say, was a clever way to address balance sheet concerns while still encouragin’ innovation. Restrictin’ rewards, they argue, would give an unfair advantage to regular card payments, where banks are constantly offerin’ incentives despite the risks involved. Fancy that!

Among the signatories are weighty organizations such as the Crypto Council for Innovation, the American Fintech Council, the Bitcoin Policy Institute, a16z Crypto, Coinbase, Ripple, Kraken, Gemini, Paxos, Stripe, Paypal, and the Solana Policy Institute, plus a whole slew of regional blockchain associations.

To conclude their argument, the coalition emphasized the consequences of revisitin’ the GENIUS framework-and highlighted the wide-ranging support for their position. The letter asks:

We implore Congress to reject any effort to limit or prohibit lawful rewards offered by platforms consistent with GENIUS.

“Preservin’ the balance Congress struck is essential to protectin’ consumers, fosterin’ competition, and ensurin’ that market structure legislation advances in a bipartisan way-and doesn’t just become a tool for protectin’ old ways at the expense of progress,” the letter stresses. It’s a powerful take, wouldn’t you agree?

The coalition also referenced studies showin’ no evidence that stablecoin adoption has caused bank deposits to decrease and pointed to the abundance of reserves banks already hold at the Federal Reserve. Supporters maintain that payment stablecoins, offerin’ simpler settlemen’t, lower costs and transparency, increase consumer choice while adherin’ to the rules Congress already set. It seems that common sense is in short supply these days. 🤨

Frequently Asked Questions 🧐

  • What are these folks askin’ Congress to do about stablecoin perks?
    They’re urgin’ lawmakers to keep the GENIUS Act compromise that allows platforms and third parties to offer legitimate rewards.
  • Why does the GENIUS Act hinder stablecoin issuers but not platforms?
    Congress stopped issuers from payin’ interest to lower risk, while still allowin’ innovation.
  • What impact could limtin’ stablecoin rewards have on competition?
    The letter claims it will reduce options and favor traditional payment systems.
  • Which companies signed this stablecoin request?
    Signatories include Coinbase, Ripple, Kraken, Gemini, Paxos, Stripe, Paypal and a16z Crypto.

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2025-12-19 07:59