- A group of 125+ digital asset companies has written a letter to US lawmakers, urging them to uphold the provisions of the GENIUS Act, particularly touching the issuance of stablecoin yields by intermediaries.
- The crypto companies urge Congress to promote innovation in its legislative endeavours, instead of succumbing to redundant industry standards.
More than 125 crypto companies have jointly written to the US Congress to protect the stablecoin yield rules codified in the GENIUS Act. The companies argue against the issues raised by Wall Street against stablecoin rewards, while pointing out the absence of principle in the case against yields.
Crypto Firms Unitedly Push Against Congressional Anti Stablecoin-Yield Moves
The companies’ letter centered on opposing Congressional efforts to “reinterpret and expand” the GENIUS Act’s prohibition of interests on stablecoins beyond the content of the legislation. According to these firms, attempts to limit or block intermediaries or third parties from issuing the said rewards would be retrogressive as it focuses legislative efforts on an already settled matter.
“The push to restrict stablecoin rewards beyond that agreed to in GENIUS is not a technical refinement or a consumer protection fix,” said the letter.
“It would prohibit the same types of incentive programs for stablecoin payments that banks have long offered on credit cards and other types of payment services, even though bank deposit-taking and lending activities create far more balance sheet and maturity- transformation risk than GENIUS-regulated stablecoin issuers.”
In the GENIUS Act, enacted in July 2025, Congress blocked stablecoin issuers from paying yield to holders. However, the legislation reserved the rights of intermediaries and other third parties, like exchanges, to offer these incentives. Crypto firms emphasize that this clear distinction provides the necessary balance needed for Wall Street and Big Crypto to function side-by-side.
Consumers Will Lose If Legislation Precludes All Stablecoin Yields
The crypto lobby is concerned that the expansion of the GENIUS Act beyond its current regulatory scope will limit consumers’ financial choices, monopolize the market concentration in a way that favors only a few firms, and stifle competition in payments and financial services.
Given the meager yields on checking and savings accounts, the crypto companies emphasize that stablecoin rewards programs would be more beneficial for the average American, since they allow intermediaries or exchanges to provide direct value to users.
“Eliminating or curtailing these programs,” said the letter, “would take money directly out of consumers’ pockets at a time when Congress is rightly focused on affordability, cost-of-living pressures, and household financial resilience.”
Big Crypto Warns Congress: Choose Innovation Against Politics
Banks have previously sent a counter request to Congress, pushing for the blockage of exchanges and other third parties from providing stablecoin yields, primarily because they feared such rewards could constitute deposit flight risks for banks.
Big crypto, however, refuted such projections, insisting that “evidence does not support claims that stablecoin rewards threaten community banks or lending capacity.” The letter cited a Charles River Associates Analysis of stablecoin adoption from 2019 to 2025, which showed that there were no unusually large withdrawals from community banks as alleged.
In essence, these crypto companies call on Congress to “reject” efforts in the ongoing market structure legislation and other bills to end lawful stablecoin rewards by platforms. They urge lawmakers to resist the pressure to establish legacy interests instead of promoting innovation.
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