2026-01-16 09:40:49

U.S. community banks raise concerns: The reward model for exchange-issued stablecoins is exploiting loopholes in the Genius Act. The banking sector believes that such incentive mechanisms blur the line between payment tokens and savings accounts, skirting regulatory boundaries. The core issue behind this—whether stablecoins are considered payment tools or financial products—remains contested. As regulatory frameworks are gradually refined, the definition and constraints of stablecoins may face adjustments.

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HashRatePhilosopher

· 9h ago

Hey, the banks are passing the buck again? Basically, when it comes to stablecoins, it's just old financial institutions fearing losing their influence.

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DaoDeveloper

· 9h ago

ngl the GENIUS loophole thing is just classic regulatory arbitrage playbook... banks crying foul because exchanges found the gap first. tbh the whole "is it payment or savings" debate is kinda missing the point - it's whatever the incentive structure makes it, right? compositional ambiguity ≠ loophole, it's just design space nobody formalized yet

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rugged_again

· 9h ago

Haha, the bank is shifting the blame again. Is there really a problem with stablecoin rewards? --- How do exchanges operate? These traditional finance guys are getting anxious, it's hilarious. --- Wait, so what exactly is a stablecoin? Regulators still haven't figured it out. --- This bill has serious loopholes, but it's normal for exchanges to exploit such small gaps. --- Payment tools are still financial products. There's no real problem, it all depends on who holds the bigger fist. --- Why are banks so anxious? They should be worried only when stablecoins really start to take off. --- The GENIUS bill sounds impressive, but in reality, it's riddled with loopholes.

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MrRightClick

· 9h ago

Haha, the banks are getting anxious. Stablecoins are indeed a bit fuzzy. The incentive scheme used by exchanges is basically dancing in the gray area. When regulators react slowly, they just take advantage of the situation. How exactly to define stablecoins? Honestly, there’s no unified standard yet; everyone is showing off their own understanding. Once a proper framework is established, many projects will probably have to adjust their stance. The war between banks and exchanges is far from over. Don’t rush to pick a side. Payment tools are still financial products. Maybe we can find a compromise—neither is nor entirely isn’t? The loopholes in the GENIUS Act are so obvious. How did the lawmakers not think of this? Anyway, stablecoins are booming, and no one can really control how the money is spent. Regulators can come whenever they want; the ecosystem will evolve its own countermeasures.

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AirdropHunterZhang

· 9h ago

Ha, you're trying to find loopholes again. I’m familiar with this trick... I’ve exploited quite a few exchange rewards before, but I’m just worried about when regulators will cut it off all of a sudden.

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