Bankers Worry New Stablecoin Law Won't Prevent Big Retailers from Finding Loopholes
Signed into law on July 18, the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) sets regulatory standards for U.S. stablecoins, including preventing them from paying interest or offering financial incentives for adoption. Despite that measure, 96% of banking executives surveyed expressed concern that major retailers and tech companies will find loopholes to offer yield-bearing stablecoins, potentially increasing competition for bank deposits.
'Bankers recognize the intent behind the GENIUS Act, but there's skepticism about its effectiveness,' said Mark Jacobsen, Cofounder and CEO of IntraFi. 'Concerns are high that nonbank corporations will find a way to offer yield, creating potential competitive pressures for traditional banks.'
The survey also found that despite recent moves by major banks like J.P. Morgan Chase, Goldman Sachs, and BNY Mellon to pursue stablecoins and/or deposit tokens, more than half (52%) of bank executives said their institutions had no immediate plans to offer similar products.
The quarterly survey also explored increasing concerns around fraud, particularly challenges associated with fraudulent checks. Eighty-two percent of bank executives cited delays or lack of cooperation from the bank of first deposit as a significant hurdle in resolving fraud disputes. Additionally, 68% reported difficulty obtaining reimbursement from the bank of first deposit, while 60% indicated their banks often reimburse customers even when not legally required.
Bankers widely supported clearer regulatory guidance on fraud liability. Eighty-two percent favored new regulations explicitly outlining banks' responsibilities for customer reimbursement, and over 70% supported enhanced collaboration and information sharing among banks to tackle fraud.
Other Highlights:
IntraFi's Q2 2025 Bank Executive Business Outlook Survey garnered responses from CEOs, presidents, CFOs, and COOs at 455 unique banks nationwide. Download the full report.
About IntraFi
IntraFi is a trusted partner chosen by over 3,000 financial institutions. Established more than 20 years ago, its network enables banks to build stronger customer relationships, fund additional loans, efficiently manage liquidity needs, and generate fee income. The network provides participants access to tens of billions of dollars in funding, the highest per-depositor and per-bank capacity, and the security to confidently place large-dollar deposits.
View original content: https://www.prnewswire.com/news-releases/bankers-worry-new-stablecoin-law-wont-prevent-big-retailers-from-finding-loopholes-302520843.html
SOURCE IntraFi
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