Blockchain Association Says Crypto Industry Is Ready to Confront Banks

Blockchain Association CEO Summer Mersinger asserted that the digital assets industry will push back against efforts by traditional banks to use regulation to block emerging competitors.

In an interview with Capitol Account, Ms. Mersinger stated that the crypto industry is now strong enough to go "toe-to-toe" with traditional financial institutions that are mounting an aggressive policy counteroffensive in Washington. She argued that banks are turning to lawmakers and regulators to protect their market share rather than competing by improving their own products. Ms. Mersinger emphasized that the Blockchain Association and its members are prepared for a long-term policy fight.

Ms. Mersinger highlighted stablecoin rewards as a central flashpoint, noting that banks are urging the Treasury Department to close what they view as a "loophole" in the GENIUS Act, which bars issuers—but not exchanges—from paying interest. She maintained that eliminating rewards would take money from consumers and asserted that banks concerned about deposit outflows should raise the rates they offer. She warned that extending the prohibition to non-issuers would likely exceed Treasury’s statutory authority.

Ms. Mersinger identified additional battles over banking charters and open banking, explaining that banks have pressed the Office of the Comptroller of the Currency to withhold trust charters from crypto firms and signaled potential litigation if approvals proceed. She added that banks are also resisting a Consumer Financial Protection Bureau rule that would require them to share consumer financial data with fintech firms. She expressed confidence that the CFPB understands the rule’s importance and is working quickly to finalize it despite funding constraints.