Banks are reportedly lobbying against stablecoin rewards to protect a significant revenue stream. According to reports, US banks earn substantial amounts annually from reserves parked at the Federal Reserve and from card swipe fees, totaling over $360 billion. Stablecoins with competitive yields threaten these revenue streams. The GENIUS Act, signed in July 2025, restricts stablecoin issuers from directly or indirectly paying interest or yield. Banking groups are advocating for this ban to extend to affiliated entities, viewing current exchange practices as a loophole. Banks hold trillions in reserve balances with the Federal Reserve, earning billions in interest. Stablecoins could offer similar yields without routing funds through traditional banking systems.

Banks are reportedly lobbying against stablecoin rewards to protect a significant revenue stream. According to reports, US banks earn substantial amounts annually from reserves parked at the Federal Reserve and from card swipe fees, totaling over $360 billion. Stablecoins with competitive yields threaten these revenue streams. The GENIUS Act, signed in July 2025, restricts stablecoin issuers from directly or indirectly paying interest or yield. Banking groups are advocating for this ban to extend to affiliated entities, viewing current exchange practices as a loophole. Banks hold trillions in reserve balances with the Federal Reserve, earning billions in interest. Stablecoins could offer similar yields without routing funds through traditional banking systems.