More than 3,200 Bankers Urge the Senate to Close the Stablecoin Loophole

January 14, 2026

To the Honorable Members of the United States Senate:

We are writing to ask you to protect consumers, preserve credit access, and promote economic stability by closing the payment of interest loophole as the Senate considers digital asset market structure legislation. The GENIUS Act prohibited payment stablecoin issuers from offering yield to customers to avoid a hit to bank deposits that would lead to a massive reduction in local lending, and now it is time to apply that same carefully considered prohibition to the crypto exchanges and other market players that Congress is poised to regulate.

We are supporters of financial innovation, including digital assets like stablecoin, and banks of all sizes are exploring ways to participate in this marketplace responsibly, but these coins were never intended to be a store of value like a bank account. Unlike banks, which reinvest deposits directly into their communities, crypto businesses offering stablecoin rewards will siphon trillions from local lending, leaving less money available for car loans, agricultural loans, mortgages, and small business borrowing that drive local economies.

We urge you to strengthen the existing prohibition in digital asset market structure legislation by extending interest restrictions to digital asset exchanges, brokers, dealers, and other affiliates. Closing this loophole is essential to supporting financial innovation while minimizing unintended consequences for customers, communities, and the broader economy.

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