The GENIUS Act has become law and banks should not try to modify it

Large financial institutions are lobbying Congress to amend the bipartisan GENIUS Act, saying that growth in stablecoins threatens bank profits and could lead to a deposit outflow of up to $6.6 trillion. However, a 2025 analysis found that there was no significant correlation between stablecoin adoption and bank deposit losses, and most stablecoin reserves remained within the traditional financial system. Critics warn that repealing key provisions will lead to regulatory fragmentation and stifle innovation, prompting banks to embrace competition rather than resist competition. The Stablecoin Act, while maintaining strong consumer protection, positioned the United States as a leader in digital finance.