ABA and 52 state banking associations demand Congress close GENIUS Act yield loophole

The American Bankers Association and all 52 state banking associations sent a joint letter to Senate Banking Committee leadership demanding that Congress clarify and enforce the GENIUS Act's prohibition on stablecoin yield — specifically to cover affiliated exchanges like Coinbase (offering 4.1% on USDC) and PayPal (offering 3.7% on PYUSD). The letter cited Treasury Department analysis projecting $6.6 trillion in potential deposit outflows and Bank Policy Institute research showing each $100 billion in outflows reduces bank lending by $60 to $126 billion.