Blockchain Association Asks Lawmakers to Protect GENIUS Act

Blockchain Association CEO Summer Mersinger pressed Senate Banking and House Financial Services Committee leaders to defend the Guiding and Establishing National Innovation for U.S. Stablecoins Act ("GENIUS Act") against efforts by banks to weaken its provisions.

In a comment letter responding to claims from banking trade groups that stablecoins could erode deposits, shrink credit, and disadvantage consumers, Ms. Mersinger described the arguments as "misleading - and self-serving." She emphasized that U.S. bank deposits exceed $18 trillion compared to a global stablecoin market of just $277 billion, and she cited research showing no measurable link between stablecoin adoption and community bank deposit flows. She also highlighted that stablecoins already support tens of billions of dollars in on-chain lending, expanding rather than contracting credit supply. She noted that the Act’s "no-yield" clause was inserted "because banks lobbied" to protect their deposit base.

Ms. Mersinger underscored that the GENIUS Act was the product of bipartisan negotiation and should not be reopened to serve incumbent interests. She argued that attempts to amend the law would undermine regulatory certainty, deter investment, and send innovation abroad. She emphasized that stablecoins are not a risk to be contained but instead an upgrade to outdated financial infrastructure, offering faster settlement, lower costs, and stronger competition. She urged lawmakers to treat the GENIUS Act as settled law that positions the United States to lead in digital assets.