Blockchain Association Petitions US Lawmakers, for Crypto Customer Rewards
The Blockchain Association and over 125 crypto industry groups sent a letter to the US Senate Banking Committee opposing a proposed ban on third-party service providers and platforms offering customer rewards for stablecoin holdings. They argue that extending the prohibition—outlined in the GENIUS regulatory framework—to third parties would stifle innovation and increase market concentration. The letter states that rewards for stablecoins are similar to incentives offered by banks and credit card companies; banning them gives traditional financial institutions an unfair advantage and prevents payment stablecoins from competing on equal terms. The association contends that such rewards help consumers offset inflation and denies that sharing yield-bearing opportunities with customers threatens the banking sector, citing lack of evidence that yields on stablecoins harm bank lending or deposit levels. Meanwhile, the FDIC proposed allowing banks to issue stablecoins under regulatory oversight, but banking industry groups remain wary, fearing stablecoin yields could erode their market share.
