Sen. Mike Rounds (R-S.D.) said Wednesday that the banking industry will need to wait until after regulators implement the GENIUS Act before lawmakers return to the question of whether stablecoins can offer yield – a blow to advocates pushing for market structure talks to further limit the practice.
Top negotiators have been bearish about closing what banks have called a loophole in the GENIUS Act. The stablecoin regulation law prohibited issuers from paying customers yield on their stablecoin holdings but not third parties like crypto exchanges.
Bank allies, like Rounds, have pushed to have the conversation anyway. But the South Dakota Republican had a different message this week. “With regard to stablecoin, I think we wait and see what the Treasury does with rulemaking to begin with,” Rounds said.
