The post US Sen. Gillibrand Pushes for Stablecoin Limits to Shield Local Banks appeared on BitcoinEthereumNews.com.

Gillibrand also warned that yield-bearing tokens could undermine community banking. Meanwhile, Wyoming Governor Mark Gordon also spoke at the DC Blockchain Summit, and announced a July launch for the state’s USD-backed stablecoin. SEC Commissioner Hester Peirce echoed calls for clearer, lasting crypto rules, as the SEC pivots under the Trump administration. With Congress ramping up legislation and Paul Atkins poised for confirmation as the SEC Chair, the US is on the brink of reshaping its digital asset regulatory landscape. Gillibrand Defends Local Banks Against Stablecoin Disruption At the 2025 DC Blockchain Summit that is held in Washington, DC, US Senator Kirsten Gillibrand voiced her strong support for stricter regulations on stablecoin issuers to protect the traditional banking sector. The New York Democrat argued that allowing stablecoin providers to offer yield-bearing products could significantly undercut local banks, which rely on customer deposits to issue home mortgages and small business loans. According to Gillibrand, if consumers shift their funds away from local banks in favor of interest-bearing stablecoins, it could lead to the collapse of key financial services that communities depend on. Sen. Gillibrand at the DC Blockchain Summit She also praised New York’s financial regulatory framework as one of the most robust globally, and advocated for the adoption of similar standards across both state and federal levels to ensure consumer protection and legal compliance in the digital finance space. Her remarks were tied to the broader legislative effort behind the GENIUS Act, which is a stablecoin regulation bill that is co-sponsored by Gillibrand and introduced by Senator Bill Hagerty in February. The main goal of the GENIUS Act is to create a comprehensive framework for the issuance and oversight of fiat-backed digital tokens. It was updated on March 10 to include enhanced anti-money laundering (AML) provisions, stricter know your customer (KYC)…

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Filed under: News - @ March 27, 2025 5:28 am