Expanding the stablecoin yield prohibition to include the application layer is an anti-competitive practice, industry advocacy groups say.
The Blockchain Association, a non-profit crypto advocacy organization, wrote a letter to the US Senate Committee on Banking, signed by over 125 crypto industry groups and companies, opposing the ban on third-party service providers and platforms offering customer rewards to stablecoin holders.
Expanding the prohibition on stablecoin issuers sharing yield directly with customers, outlined in the GENIUS stablecoin regulatory framework, to include third-party service providers stifles innovation and leads to “greater market concentration,” the letter said.
The letter compared the rewards offered by crypto platforms to those offered by credit card companies, banks and other traditional payment providers.
