Healthy competition drives innovation and better products for consumers; It is at the center of American financial management. Unfortunately now The fact that the Bipartisan Genius Act is signed in the law seems that the large older financial institutions have other thoughts about the innovations that stablecoins can bring to the financial markets. Banking grouping groups and teams in public affairs have the Pepper Congress with complaints about the law, and encourage members to reopen debate and introduce changes in the legislation that will ensure that the stablecoin market does not grow too fast and protects banks’ profits and suffocates consumer choices.
This reactionary response is both excessive and unnecessary. What legacy financial companies should do instead is to embrace competition and offer exciting new products and services that consumers want do not try to knee caps new players through anti -innovation rules and rules.
The Genius Act was carefully designed with a thorough Bipartisan process to strengthen consumers’ protective measures, ensure regulatory supervision and maintain economic stability. Efforts to roll back its regulations are less about protecting families and more about protecting anchored banking interests from competition that help ensure that the US banking system remains the strongest and most innovative in the world.
Critics warn that allowing stableecoins to give rewards can lead to massive payment outflow from community banks, spoken spoken on $ 6.6 trillion. But closer examination shows that this fear is unfounded. An analysis from July 2025 by the Charles River Associates consulting firm found no statistically significant correlation between stableecoin resolution and payment outflows in society. In fact, the overwhelming majority of stableecoin reserves remain in the traditional financial system in commercial bank accounts or in short-term treasuries-where they continue to support liquidity and credit in the wider US economy. The serious estimates are dependent on unrealistic assumptions that every dollar of stablecoin issuance is permanently leaving the banking system.
StableCeCoin does not sifle resources away from lending. If anything, their growth can increase the influx to the US money supply over time, according to a Treasury Department report. This means that Americans can take advantage of modern, programmable digital dollars without threatening the availability of credit in their community.
Others have called on the cancellation of section 16(d) of the genius law that allows subsidiaries of state institutions to implement stablecoin business across state lines without needing further licenses. If this important part of genius is abolished, the result would be a fragmented, balkanized and ineffective regulatory regime that stifles interstate trade.
Innovation has always been the lifeblood of American capitalism – that’s what sets out dynamic market economies from stagnant, protected. Instead of trying to box new market participants, banks should work to ensure that their current and future customers have access to groundbreaking products and services, including healthier interest rates in deposit accounts.
While Federal Reserve’s target rate is over 4%today, the average control account provides only 0.07%and savings accounts 0.39%. This hole does not reflect consumer protection; It reflects the value caught by banks. StableCOin rewarding programs, on the other hand, allow platforms to compete head-to-head on customers in ways that force established companies to offer better value. Consumers win when competition is found.
Genius Act positions the US as the global leader in digital funding, while the strongest consumer protection maintains. Congress was already discussing and settling these issues through careful Bipartisan consideration. The law requires one-on-one reserves in cash or treasuries, robust license and supervision and transparency far beyond what is expected of traditional deposits. Relitation of these issues now would undermine this consensus and threaten to slowly America’s leadership in digital funding.
Stableecoins do not represent a loophole, they represent an innovation that retains the stability of the banking system while giving consumers the benefit of competition. Politicians should look through this fear campaign and stand by the balanced, Bipartisan framework congress already adopted.
Innovation and competition built US financial management. It’s time to let it work again – and not let the current interests stifle its promising growth. US consumers deserve nothing less.
