As a banker in tune with public policy, I closely followed the developments with the GENIUS Act that passed Congress on a bi-partisan basis and was signed by President Trump earlier this year. I was pleased to see the bill strike a balance between establishing America as the global leader in crypto and protecting our existing banking system. Unfortunately, a loophole has been found in the GENIUS Act that could cripple banks and small towns across the Commonwealth. The GENIUS Act includes a ban on stablecoin issuers providing interest, yield, or other financial incentives to stablecoin holders. However, because it does not explicitly prohibit exchanges–who often serve as distribution channels for cryptocurrency issuers–from offering such benefits, the Act’s intended restrictions can be circumvented. This loophole allows stablecoin holders to receive interest indirectly, thereby undermining the obvious intent of the legislation.

This loophole could cause $6.6 Trillion of deposits to flee all kinds of banks for cryptocurrency of various types. Our community bank’s ability to give loans to its customers relies heavily on the deposits that it holds. This means affordable loans for single parents looking for a home, entrepreneurs, families in a time of need, and the list goes on. Without these banks providing support to their neighbors, the banking industry grows farther from its customers and less accessible to the common man. I write this letter to the Editor to bring awareness to this concerning matter, and I hope that Congress will close this loophole before everyday Pennsylvanians are harmed.

RANDY BLACK

President, First Citizens Community Bank

Mansfield

Submitted by Virtual Newsroom