Traditional banks will be battling with stablecoin issuers for retail depositors when the stablecoin-focused GENIUS Act takes full effect in a win for everyday people.
The stablecoin-focused GENIUS Act, which was enacted in July, will trigger an exodus of deposits from traditional bank accounts into higher-yield stablecoins, according to the co-founder of Multicoin Capital.
“The GENIUS Bill is the beginning of the end for banks’ ability to rip off their retail depositors with minimal interest,” Multicoin Capital’s co-founder and managing partner, Tushar Jain, posted to X on Saturday.
“Post Genius Bill, I expect the big tech giants with mega distribution (Meta, Google, Apple, etc) to start competing with banks for retail deposits,” Jain added, arguing that they would offer better stablecoin yields with a better user experience for instant settlement and 24/7 payments over traditional banking players.
