Crypto Industry Executives: Amending the GENIUS Act Could Create a "National Security Trap"

Odaily News Multiple crypto industry executives and advocacy organizations have warned that modifying the stablecoin regulatory framework, the GENIUS Act, as requested by banking lobbyists—specifically by restricting the provision of yields to stablecoin holders through third parties—could undermine the United States' competitiveness in the global financial system and even constitute a "national security trap."

Pro-crypto lawyer John Deaton stated that prohibiting yield mechanisms for stablecoins might instead drive the market toward China's interest-bearing digital yuan, thereby weakening the position of the U.S. dollar. The crypto industry organization Blockchain Association pointed out that there is currently no evidence that the development of stablecoins would disrupt the traditional banking system, and such amendments appear more like a competitive blocking tactic by large banks following the existing bipartisan consensus.

Alexander Grieve, Vice President of Government Affairs at Paradigm, also warned that overturning the existing reward arrangements would waste the legislative progress achieved. Meanwhile, Galaxy Digital CEO Mike Novogratz bluntly stated that it would be a mistake for the U.S. to roll back related rules due to industry pressure. (Cointelegraph)