ABA Statement on House Passage of the GENIUS Act

“ABA and our members across the country believe it is important to establish a durable regulatory framework for stablecoins that balances their potential with the need to limit negative consequences, promote financial stability and protect consumers. While the framework established in the GENIUS Act seeks to create that regulatory perimeter and spur innovation, stablecoins continue to risk disintermediating core bank activity like deposit taking and lending, which could undermine the fundamental role banks play in making loans to consumers and businesses. We thank Chairman Hill, Chairman Steil, and the members of the House Financial Services Committee for their willingness to work with us throughout the legislative process, and we appreciate their sincere interest in passing thoughtful payment stablecoin legislation. We look forward to continuing our advocacy on these issues, including through the rulemaking process, to ensure credit is not restrained by incentivizing value be held in payment stablecoin rather than bank deposits.”