The Blockchain Association, a non-profit organization dedicated to the defense of the ecosystem, expressed its rejection of a possible ban that would prevent service providers and external platforms from offering incentives to stablecoin holders.
The entity sent a letter to the United States Senate Banking Committee supported by more than 125 companies and associations in the sector. In it, he warned that extending the restriction (which currently prevents stablecoin issuers from sharing returns directly with users, according to the GENIUS regulatory framework) to third parties would limit innovation and encourage greater market concentration.
The association compared the rewards programs of cryptocurrency platforms with the benefits offered by traditional players such as banks, credit card issuers and other payment systems. He argued that prohibiting similar incentives for stablecoins would create an unfair competitive advantage in favor of the traditional financial system.
“The potential benefits of stablecoins as a means of payment cannot be fully developed if they are not allowed to compete on equal terms with other payment methods,” the letter noted, also recalling that “incentives and rewards are common practice in competitive markets.”
A permanent opposition
The Blockchain Association has reiterated on several occasions its opposition to initiatives that seek to prevent cryptocurrency platforms from sharing performance opportunities with users, arguing that these mechanisms help mitigate the impact of inflation on consumers.
In parallel, the Federal Deposit Insurance Corporation (FDIC) presented a proposal that would open the door for banks to issue stablecoins. This through subsidiary companies. Under the approach, both banking entities and their subsidiaries would be subject to the evaluations and regulatory requirements of the FDIC, including reserve and financial solvency requirements.
In this sense, the association rejected the idea that yielding stablecoins or rewards programs represent a risk to the traditional banking system.
On the other hand, He stressed that there is no evidence to support that these incentives affect community banks. There is also no information that they affect your ability to grant credit. And he added that it is difficult to maintain that bank loans are limited by the outflow of deposits towards these products.
The banking sector has intensified its pressure against yielding stablecoins and cryptocurrency and bitcoin platforms that share profits with users, fearing that the interest offered by these digital assets will reduce their participation in the financial market.