US regulators to play key role in next crypto, bank fight
[WASHINGTON, DC] A major battle between crypto firms and traditional lenders over interest and bank charter applications is poised to be decided by regulators appointed by US President Donald Trump, who has been a vocal supporter of digital currencies.
The Genius Act, which requires stablecoin issuers to formally register and hold dollar-for-dollar reserves, sets in motion a rule-writing process with US regulators that will determine what qualifies as generating interest on stablecoins and how far they can go in acting like a traditional bank. Trade groups, though, are already pushing back against attempts to grant bank charters to crypto firms and find workarounds for yield-generating stablecoins.
“There’s a huge fight brewing…
