Banking industry representatives came out firing Wednesday after regulators finalized a rule settling the debate over a legal loophole created by Congress in favor of cryptocurrency exchanges’ ability to pay interest on account owners’ stablecoin holdings in certain instances.
Last year’s law known as the “GENIUS Act” created a regulatory framework for stablecoins — digital assets pegged to stable assets like the U.S. dollar or Treasury bills — that are designed to be less volatile than traditional cryptocurrencies like bitcoin.
