Crypto industry executives: Amending the GENIUS bill could constitute a "national security trap"

Several crypto industry executives and advocacy groups have warned that amending the GENIUS Act, the regulatory framework for stablecoins, as demanded by the banking industry, to restrict the provision of yields to stablecoin holders through third parties could weaken the United States' competitiveness in the global financial system and even constitute a "national security trap." Pro-crypto lawyer John Deaton stated that banning stablecoin yield mechanisms could actually incentivize the market to shift towards China's interest-bearing digital yuan, thereby weakening the dollar's status. The crypto industry organization Blockchain Association pointed out that there is currently no evidence that the development of stablecoins will undermine the traditional banking system; such amendments are more likely a competitive obstruction by large banks after an existing bipartisan consensus has been reached. Alexander Grieve, Vice President of Government Affairs at Paradigm, also warned that overturning existing incentive arrangements would waste legislative progress. Meanwhile, Galaxy Digital CEO Mike Novogratz stated bluntly that it would be a mistake for the United States to withdraw relevant rules due to industry pressure. (Cointelegraph)