Crypto executives warn proposed GENIUS Act yield change risks US dollar and national security

Crypto industry groups and executives have criticized community bankers' requested changes to the GENIUS Act that would bar stablecoin holders from earning yield via third parties. They argue the move would strengthen China's interest-bearing digital yuan as a competitor to the US dollar and undermine carefully negotiated bipartisan legislation. Pro-crypto lawyer John Deaton called the proposal a "national security trap," while other industry leaders said it would harm competition and stall progress in stablecoin regulation.