Preview | From GENIUS Act to CLARITY Act | How Stablecoin Regulation can Reshape Finance

The GENIUS Act intended to limit stablecoin competition with banks by banning interest payments, but created a loophole allowing crypto exchanges to offer generous "rewards" (Coinbase: 4.1%, Kraken: 5.5%). While banks fight this deposit competition, they're missing the real threat: stablecoins could devastate the credit card industry's lucrative swipe fees. With Treasury yields at 4%+ backing stablecoins versus 1.5-3% merchant fees for card transactions, retailers like Amazon and Walmart are exploring stablecoin partnerships to eliminate payment friction while offering superior rewards. The irony? Banks that lobbied against stablecoin interest are now rushing to launch their own crypto payment products. The upcoming CLARITY Act will determine whether this disruption reshapes the $150+ billion payment processing market.