Genius law was approved on June 20 to regulate the use of Stablcoins in the United States.
The norm arose after bank pressures, worried about losing competitiveness.
David Sacks, the businessman designated by Donald Trump known as “Crypto Zar”, questioned the newly approved Genius law, arguing that It was the traditional bank that imposed the conditions to limit the competition of the stablcoins. According to Sacks, the prohibition that the emitters transfer interest to the Holders was a necessary “commitment” to achieve the support of the banks, which they see in the Stablecoins a direct threat to their business model.
The Genius Law, approved on June 20, 2025, seeks to regulate stablcoins in the US. With the aim of protecting consumers, as reported cryptootics. However, the prohibition of moving on interest to the Holders has generated controversy. This means that the new law prevents Stablecoins emitters (as companies or platforms that create and manage these assets) pay interest to people who possess those tokens (Holders).
In An interview Published on June 20, Sacks argued that this measure was not essential for the approval of the law, but was imposed due to the pressures of the community bank, which fears that 5% interest in Stablcoins put them “out of business.”
Although Sacks recognizes bank concerns, he considers them exaggerated. “I don’t think that is what would have happened,” he said, suggesting that restriction is a setback for sector innovation. Besides, express Hope that, in the future, this provision be reviewed to allow greater freedom to the emitters, especially once the banks get involved in the Stablcoins space.
The critic of Sacks seems to resonate in the community, where it is perceived that the law protects traditional interests at the expense of the competition. Max Keiser, for example, express His discontent in this regard, stating that the stablcoins “are designed to be an access route to the US dollar, empowering politicians and emitters who work with traditional banks to combat Bitcoin’s self -ocustody.”
This restriction could limit the growth of decentralized finances (Defi), which depend on the stablcoins for liquidity and yields. For many, the genius law, although it promotes adoption, also slows innovation by prioritizing traditional banking.
