Banks are reportedly lobbying against stablecoin rewards to protect their revenue streams. According to reports, US banks generate substantial revenue from deposits at the Federal Reserve and card swipe fees, totaling over $360 billion annually. The GENIUS Act, signed in July 2025, restricts stablecoin issuers from directly or indirectly paying interest or yield. Banking groups are concerned about exchanges routing rewards through affiliate programs, viewing it as a loophole. The American Bankers Association, along with 52 state banking associations, has urged Congress to extend the ban to affiliated entities. Banks hold significant reserve balances with the Federal Reserve, earning substantial interest.

Banks are reportedly lobbying against stablecoin rewards to protect their revenue streams. According to reports, US banks generate substantial revenue from deposits at the Federal Reserve and card swipe fees, totaling over $360 billion annually. The GENIUS Act, signed in July 2025, restricts stablecoin issuers from directly or indirectly paying interest or yield. Banking groups are concerned about exchanges routing rewards through affiliate programs, viewing it as a loophole. The American Bankers Association, along with 52 state banking associations, has urged Congress to extend the ban to affiliated entities. Banks hold significant reserve balances with the Federal Reserve, earning substantial interest.