GENIUS Act expands fintech powers, raises concerns for banks
The GENIUS Act introduces a new regulatory framework for payment stablecoins, allowing nonbank fintech firms to issue them under federal supervision. This shift has raised concerns among traditional banks about increased competition and potential deposit flight. The legislation aims to ensure compliance with financial regulations while providing a structured environment for digital payments.
- ▪The GENIUS Act was signed into law on July 18, 2025, and allows nonbank firms to issue payment stablecoins.
- ▪Issuers must maintain a 1:1 reserve ratio backed by liquid assets and comply with strict regulations.
- ▪Traditional banks are lobbying for regulatory changes to protect their interests amid the rise of fintech competitors.
Opening excerpt (first ~120 words) tap to expand
GENIUS Act expands fintech powers, raises concerns for banks The new stablecoin law gives nonbank firms a regulated on-ramp to digital payments, and traditional banks are not thrilled about the competition. Share Add us on Google by Editorial Team May. 26, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); For decades, the playbook was simple: if you wanted to move money at scale in America, you needed a bank charter.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Crypto Briefing.
Discussion
0 commentsMore from Crypto Briefing
