Blockchain for Banking News

Lawmaker asks if GENIUS Act gives stablecoin deposits priority in bank runs

Congress stablecoins

Yesterday the House Financial Services Committee held a hearing regarding the oversight of prudential regulators during which various aspects of the GENIUS Act for stablecoins were discussed. Beyond the ineffectual interest ban clause, an important issue was raised relating to bank runs. One interpretation of the legislation’s wording is that bank deposits made by a stablecoin issuer might have preference over other bank deposits.

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Image Copyright: House of Representatives