GoKawiilRegulators confirm crypto exchanges may keep paying reward-style yields under GENIUS Act
Federal regulators said Wednesday that cryptocurrency exchanges can continue offering interest-like rewards to customers under new rules stemming from the GENIUS Act, legislation signed into law last year to govern stablecoin issuers. The decision comes despite objections from banks, which had warned that such reward programs risk pulling large sums of deposits out of the traditional banking system.
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The ruling suggests regulators are prioritizing the growth of crypto-based financial products over banks' concerns about deposit flight, which could reshape competition between traditional banks and crypto platforms for consumer savings. Banks' warnings imply they see these reward programs as a competitive threat, though the actual scale of deposit migration remains uncertain and would depend on consumer adoption.
- Regulators affirmed crypto exchanges can keep offering interest-like customer rewards.
- The decision stems from implementation of the GENIUS Act, a stablecoin regulatory law.
- Banks had warned the practice could shift trillions in deposits away from traditional banking.
Source: fastcompany.com, 2026-10-21
Published there as: “Crypto exchanges can keep paying interest-like rewards, federal regulators say”
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