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ABA said financial institutions had “fundamental concerns about insufficient regulation, supervision and enforcement applying to all payment stablecoin issuers."

ABA flagged ‘fundamental’ stablecoin concerns in February letter

The American Bankers Association privately told the Senate Banking Committee late last month the industry had “fundamental concerns” with the stablecoin legislation led by Sen. Bill Hagerty (R-Tenn.). An updated version of that bill is set to be marked up tomorrow morning.

In a Feb. 28 memo obtained by Punchbowl News after being shared with Senate Banking Committee staff, the nation’s largest trade association for banks said financial institutions had “fundamental concerns about insufficient regulation, supervision and enforcement applying to all payment stablecoin issuers,” according to the document.

The GENIUS Act has changed in some significant ways since that letter was shared with the committee, making its policy prescriptions less relevant this week. Bankers seem to be feeling better about the bill today than they were last month. But the document, which you can read here, is a high watermark for the industry’s legislative worries after years of conversations with Capitol Hill about digital asset policy.

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