The core controversy surrounding the GENIUS Act on stablecoins actually hinges on one issue: who has the authority to distribute yields to users.

In simple terms, the rules of the bill are as follows—

**Clear restrictions**: Stablecoin issuers like Tether and Circle are not allowed to directly pay interest to their coin holders. This line is drawn very strictly, with the reason being to protect the traditional banking system.

**But an exception is made**: Third-party platforms such as exchanges and wallets can offer "rewards" or other indirect income models. It appears that policymakers intend for intermediaries to become the main channels for yield distribution.

Now, the issue arises. By the end of 2025, the banking system strongly opposed this bill. They believe the loophole is too large—under the guise of "rewards," exchanges can still provide indirect yields, which completely defeats the purpose of protecting bank deposits.

The focus of this debate is here: policymakers aim to limit the power of stablecoin issuers to maintain financial order, but unintentionally strengthen the role of platforms like exchanges as financial intermediaries. Banks feel they are being sidelined.