According to reports, US community banks are raising concerns about a potential loophole in the GENIUS Act related to stablecoins. The banks argue that stablecoin rewards, particularly those offered through exchanges, are exploiting this loophole. This exploitation, according to the banks, blurs the distinction between payment tokens and traditional savings accounts. The development highlights ongoing regulatory challenges in the stablecoin space, as financial institutions seek clarity on the classification and treatment of these digital assets.

According to reports, US community banks are raising concerns about a potential loophole in the GENIUS Act related to stablecoins. The banks argue that stablecoin rewards, particularly those offered through exchanges, are exploiting this loophole. This exploitation, according to the banks, blurs the distinction between payment tokens and traditional savings accounts. The development highlights ongoing regulatory challenges in the stablecoin space, as financial institutions seek clarity on the classification and treatment of these digital assets.