Blockchain Association opposes expanding stablecoin yield ban to third parties

The Blockchain Association, backed by 125+ industry groups, sent a letter to the US Senate Banking Committee opposing the expansion of the stablecoin yield prohibition to third-party platforms, calling it anti-competitive.

While the "GENIUS" regulatory framework bans issuers from paying yield, the letter argues that extending this ban to crypto platforms—similar to credit card rewards—would stifle innovation and increase market concentration.