The Behind the Ban on Stablecoin Payments: Bank Lobbying and the Innovator's Dilemma

【Crypto World】The CEO of a leading compliant trading platform has spoken out on social media, stating that banks are lobbying the U.S. Congress to amend the “Genius Act,” but this red line must not be compromised. The platform’s stance is clear: it is essential to protect customer interests and the innovative space of the entire cryptocurrency industry.

Interestingly, this executive predicted a classic business paradox. He believes that in a few years, once traditional banks realize how much profit stablecoins can generate, their stance will immediately reverse. At that point, banks will lobby Congress to lift restrictions on stablecoin profits. All current opposition is just a waste of effort and morally indefensible. This is the so-called innovator’s dilemma—there are always those who want to rewrite the rules after emerging markets have taken off.

The current situation is that the “Genius Act” prohibits stablecoin issuers from offering rewards, but platforms like Kraken and Gemini can. If banks succeed in lobbying to amend the law to ban such activities, the space for stablecoin innovation will be greatly squeezed. The outcome of this game will ultimately influence the development direction of the entire Web3 payment ecosystem.