Community Banks Urge Congress to Close Stablecoin Yield Loophole Amid $6.6 Trillion Risk
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 08 2026- Stablecoin Yield Warning: The American Bankers Association's Community Bankers Council is urging Congress to close a loophole in the GENIUS Act, claiming it could trigger up to $6.6 trillion in deposit outflows from traditional banks, posing a significant threat to the banking sector.
- Crypto Exchange Yield Concerns: Representing over 200 community bank leaders, the council highlights that platforms like Coinbase and Kraken exploit this loophole to pay yields to stablecoin holders, potentially destabilizing financial markets.
- Regulatory vs. Innovation Debate: While regulators argue over yield issues, crypto advocacy groups warn that proposed legal changes could stifle innovation and consumer choice, potentially leading to decreased market vitality.
- DeepSnitch AI Tool Launch: DeepSnitch AI has raised over $1.1 million in its presale stage, with a 116% price increase, providing retail traders with new tools to avoid investment traps, reflecting strong market interest in early-stage projects.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
