GENIUS Act Dispute Deepens as Coinbase Clashes with 52 Banks Over Stablecoin Rules
The post GENIUS Act Dispute Deepens as Coinbase Clashes with 52 Banks Over Stablecoin Rules appeared on BitcoinEthereumNews.com.
Regulations The battle over how the U.S. should enforce its first national stablecoin law has intensified after the American Bankers Association (ABA) and 52 state banking groups publicly called on the Treasury Department to maintain the GENIUS Act’s strict ban on stablecoin interest. Key Takeaways: ABA and 52 state groups urge Treasury to keep the stablecoin interest ban. Coinbase wants the restriction limited to issuers. Banks warn of major deposit outflows if interest is allowed. GENIUS Act rules expected by late 2026. Coinbase Q3 revenue hit $1.86B, led by stablecoin growth. In a statement shared on X (formerly Twitter), the ABA said it was joining forces with state banking associations to urge the Treasury to “uphold GENIUS Act’s ban on stablecoin interest,” arguing that loosening the rule could destabilize the financial system. The post quickly gained traction, reflecting growing tension between traditional banks and crypto industry leaders over the future of dollar-backed digital assets. Just released – ABA and 52 state banking associations urge @USTreasury to uphold GENIUS Act’s ban on stablecoin interest: https://t.co/2P2jelAuAg — American Bankers Association (@ABABankers) November 4, 2025 Coinbase and Banks Take Opposite Sides Coinbase, meanwhile, has been pressing regulators to interpret the law more narrowly. The exchange insists that only stablecoin issuers should be restricted from paying interest, while platforms, wallet providers, or third-party services should remain free to offer loyalty rewards and other incentives. The company’s policy chief, Faryar Shirzad, has warned that overreaching regulation could “weaken America’s competitive edge” in digital finance and slow the adoption of stablecoins as a modern payment solution. Coinbase has also asked that blockchain developers and validators be exempt from the compliance rules meant for financial institutions. We submitted @coinbase‘s response to @USTreasury‘s request for comments on the implementation of the GENIUS Act. Our message is simple: GENIUS…
Filed under: News - @ November 6, 2025 7:32 pm