The Blockchain Association, a non-profit organization dedicated to ecosystem defense, said it rejects the possibility of a ban that would prevent service providers and external platforms from offering incentives to stablecoin holders.
The company, supported by more than 125 companies and associations in the sector, sent a letter to the U.S. Senate Banking Committee. In it, he warned that extending this restriction (currently, according to the GENIUS regulatory framework, stablecoin issuers are prohibited from sharing profits directly with users) to third parties, would limit innovation and encourage further market concentration.
The association compared the rewards programs of crypto platforms with the benefits offered by traditional players. such as banks, credit card issuers, and other payment systems. He argued that banning similar incentives for stablecoins would create an unfair competitive advantage that favors the traditional financial system.
“The full potential benefits of stablecoins as payment methods cannot be realized unless they are allowed to compete on equal terms with other payment methods,” the letter said, also reminding that “incentives and rewards are common in competitive markets.”
permanent opposition
The Blockchain Association reiterated its opposition to efforts to prevent crypto platforms from sharing performance opportunities with their users, arguing that these mechanisms can help reduce the impact of inflation on consumers.
in parallel, LA Federal Deposit Insurance Corporation (FDIC) Banks have presented a proposal that would pave the way for them to issue stablecoins.. This is done through its subsidiaries. Under this approach, both the banking entity and its subsidiaries would be subject to FDIC evaluation and regulatory requirements, including reserve and financial solvency requirements.
In this sense, the association rejected the idea that offering stablecoins or reward programs represents a risk to the traditional banking system.
on the other hand, He stressed that there is no evidence to support that these incentives impact community banks.. There is also no information that will affect your ability to grant credit. He added that it is difficult to argue that bank lending is being restricted by the outflow of deposits into these products.
The banking sector is increasing pressure to offer stablecoins, cryptocurrencies and Bitcoin platforms that share profits with users, fearing that the interest earned by these digital assets will reduce users’ participation in financial markets.