Recently, the American banking organization issued an urgent call to Congress, requesting amendments to the provisions regarding stablecoin earnings in the GENIUS Act. Several banking groups, including the American Bankers Association, pointed out that the act has significant regulatory loopholes that could lead to serious financial risks.

It is reported that the current bill allows stablecoin issuing institutions to provide returns to holders through their affiliated companies, a practice that has raised strong concerns within the banking industry. They believe that if left unchecked, it could lead to up to $6.6 trillion in funds flowing out of the traditional banking system, which would have a tremendous impact on the entire financial ecosystem.

Experts analyze that large-scale capital outflows not only weaken the deposit base of traditional banks but may also lead to a reduction in credit supply, thereby raising overall borrowing costs. In this situation, ordinary consumers and small to medium-sized enterprises may face higher financing pressure.

It is worth noting that stablecoins, as an important component of the cryptocurrency ecosystem, have been the focus of attention from governments and financial institutions regarding their regulation. The recent warnings from the U.S. banking sector once again highlight the complex relationship between digital assets and the traditional financial system, as well as the challenge of finding a balance between innovation and stability.

With the proposal of this call, the industry generally expects Congress to reconsider the GENIUS Act and make more cautious considerations regarding stablecoin regulation. This trend will undoubtedly have a profound impact on the entire cryptocurrency industry, and all parties will closely monitor the subsequent developments.