Crypto Advocates Push Back Against Wall Street Lobbying Over Stablecoin Rewards

Stand With Crypto, a pro-crypto organization founded by Coinbase, has mobilized its 2.7 million members to counter Wall Street banks’ lobbying efforts targeting the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The group reported that members have sent over 250,000 messages to U.S. senators urging them to defend stablecoin rewards and resist pressure from traditional banking associations.

The GENIUS Act, enacted earlier this year, restricts stablecoin issuers from directly offering yield or interest but allows affiliates and exchanges to do so. Banking groups such as the American Bankers Association and the Bank Policy Institute have argued that this provision could divert deposits from banks and disrupt money market funds. They’re pushing Congress to close what they call a “stablecoin payment of interest loophole,” claiming it could threaten the flow of credit and financial stability.

In response, Stand With Crypto has urged lawmakers to stand firm. The organization’s automated letter emphasizes that stablecoin rewards benefit consumers, contrasting them with credit card rewards banks fought to protect just last year. The message reads, “A ban on rewards would stop consumers from earning value on fully backed digital dollars.”

While U.S. regulators are in the early stages of implementing the stablecoin framework, progress has been stalled due to a federal government shutdown caused by Congress’s budget impasse. Despite the delay, crypto advocates see the GENIUS Act as a crucial step in legitimizing digital assets and ensuring fair competition between decentralized and traditional finance systems.

As the regulatory landscape evolves, the ongoing debate underscores the growing influence of crypto lobbyists and the industry’s determination to protect innovation from entrenched financial interests.