Ah, that makes sense.  And another example of how big industry players will always have their thumbs on the scale of any legislation

SimpleStacker

The GENIUS Act was designed to keep stablecoins as payment tools rather than savings products. As a result, it bans issuers from paying interest or yield to stablecoin holders. 

I think that under current rules, exchanges are not precluded from offering interest/rewards to people who deposit stable coins with them.

The recent CLARITY Act debate has been about a provision that would stop exchanges from doing this. I believe this was a major reason Coinbase backed out.

econ

The Tether-Trade Regulation Plot Thickens (Money Stuff, Matt Levine)

denlillaapan

>  The GENIUS Act was designed to keep stablecoins as payment tools rather than savings products. As a result, it bans issuers from paying interest or yield to stablecoin holders. [Cointelegraph](https://cointelegraph.com/news/why-us-community-banks-say-the-genius-act-has-a-stablecoin-loophole)

I think that under current rules, exchanges are not precluded from offering interest/rewards to people who deposit stable coins with them. 


The recent CLARITY Act debate has been about a provision that would stop exchanges from doing this. I believe this was a major reason Coinbase backed out.