In July, President Trump signed the GENIUS Act, a bill to regulate stablecoins and protect consumers. The new law makes it clear that stablecoin issuers cannot offer interest on their digital dollars. This clear prohibition was added to protect Americans from confusing uninsured stablecoin wallets with insured bank deposits and to ensure that the law did not create incentives that would undermine bank lending to small businesses and communities. However, a loophole permitting payments of interest on stablecoins could put everyday consumers at risk. A Treasury Department report estimates this special interest loophole could drain trillions in deposits from community banks, which could limit their ability to fund loans for households and small businesses.  

Your lawmakers have an opportunity to protect consumers and preserve lending by closing this loophole, fostering a safe and secure marketplace. Urge your lawmakers to extend restrictions on paying interest or yield on payment stablecoins to cover all market participants, thereby ensuring that payment stablecoins serve as a payment tool that supports financial innovation while minimizing unintended consequences for the banking system and broader economy.  

Ask your Senators to close the interest loophole to protect lending in local communities.