The Genius Act may end traditional banking exploitation, says Multicoin executive

The GENIUS Act is set to allow stablecoin issuers to directly compete with banks, offering depositors higher yields. Tushar Jain states that banks could see a massive $6.6 trillion outflow in deposits as consumers are drawn to these better rates.

The legislation might not fully prevent banks from offering yields indirectly through affiliates. Therefore, a major shift toward stablecoin usage could disrupt traditional banking’s reliance on attracting deposits, prompting banks to raise interest rates to keep depositors.