Stablecoin’s exfoliation should be limited from providing opportunities to carry yields to protect the legacy banking system, which releases home mortgages and small business loans, Senator Kirsten Gillibrand said at a summit in Washington, DC.
Speaking at the 2025 DC Blockchain Summit on March 26th, Democratic Senator from New York praised his state for having some of Most stable financial regulations worldwideAnd it is said that they should be adopted by all financial service sectors.
According to Gillibrand, these regulations must be applied to those who provide stablecoin, if they are controlled at the state or federal level, to ensure compliance with existing laws and protect consumer safety. Then Gillibrand turned his attention Protecting the banking industry:
“Do you want a stablecoin issuer to issue an interest, maybe not, because if they release interest, there is no reason to put your money on a local bank. If there is no reason to put your money on a local bank, who will give you a mortgage?
“Without a deposit, small banks can’t do that; it will drop the financial service system that relies on people for their businesses and mortgage,” Gillibrand continued.
Senator Gillibrand speaks to a panel during the DC Blockchain Summit. Source: DC Blockchain Summit
Related: The US Stablecoin Bill is likely to ‘next 2 months’ – leader of Trump Council Council
Gillibrand is a co-sponsor of genius stablecoin law — a bill Senator Bill Hagerty introduced In February to establish a comprehensive regulation framework for Fiat digital tokens.
On March 10, Hagerty updated the bill To integrate the stricter provisions of anti-money laundering, find out your customer requirements (KYC), financial transparency regulations, and consumer protection controls.
The Senate Banking Committee Advanced the genius bill In an 18-6 vote on March 13. The bill of Congress’s chamber should be cleared of floor votes before it hit President Donald Trump’s desk for signing.
The Genius Act of 2025. Source: United States Senate
Critics of genius stablecoin bill said Establish a central digital currency (CBDC) in the United States by privatized way.
Jean Rausis, co-founder of decentralized trading platform Smardex, argued that centralized stablecoins provide ways for state censorship and state monitoring that could end the government’s ability to kill money or lock individuals outside the financial system.
