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

According to Odaily, several crypto industry executives and advocacy organizations have warned that amending the stablecoin regulatory framework "GENIUS Act" as requested by banking lobbyists—to restrict third parties from providing yields to stablecoin holders—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 banning stablecoin yield mechanisms could instead drive the market toward China's interest-bearing digital yuan, thereby weakening the status of the US dollar. The crypto industry organization Blockchain Association pointed out that there is currently no evidence that the development of stablecoins would undermine the traditional banking system, and such amendments appear to be more of a competitive blockade by large banks after bipartisan consensus has been reached.

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 US to roll back relevant rules due to industry pressure. (Cointelegraph)