Cross River Urges Senate to Preserve Stablecoin Yield Rules

As a company that thrives in the world of technological innovation and growth, Cross River stands apart from entrenched, legacy banking interests. Cross River is the bank that powers innovation and leverages exciting new technologies and partnership models to solve the world’s oldest financial challenges. Digital assets like stablecoins are the blocks with which the boldest in the industry are building.

We support federal stablecoin rules that allows yield on stablecoin deposits by third parties. The ability of third parties to offer yield for stablecoins provides crucial competitive parity for digital assets, preserving choice for the consumer. Right now, the United States Senate is considering legislation to create market structure for digital assets. This is a good thing. But entrenched interests are asking them to create artificial barriers where they aren’t needed. They’re asking that Congress reverse course on legislation it passed barely six months ago. Congress should not reverse course, and instead keep the stablecoin yield rules created by GENIUS in place.

Innovative fintechs are already adhering to these rules and passing the benefits along to consumers. If the policymakers’ goal is to truly foster innovation, help new financial technologies develop, and create the most expansive range of options for consumers, they must not erect artificial barriers to competition. Cross River knows the stablecoin market well. Our stablecoin infrastructure—built directly into our real-time core—demonstrates that bank-grade digital asset services can be compliant, safe, and scalable. It’s just the latest example of fintech-focused solutions to help expand access to credit and consumer choice in financial services. If Congress wants to continue fostering consumer choice and supporting responsible innovation, then it must leave the law unchanged.

In recent weeks, representatives from several bankers’ associations have made their position against stablecoin yields very clear, suggesting the issue demands action from every bank leader in the country. Cross River does not agree with this position.

Banking industry representatives have suggested the recently-passed GENIUS Act, would result in a trillion dollar-plus drain of deposits from the banking system. As a community bank, Cross River agrees that the overall health of the banking system is vital, but projections of mass withdrawal are unsubstantiated. Additionally, even if the claim were accurate, it is entirely beside the point. The banking system exists to protect customer deposits, not the other way around. It is Cross River’s position that the customer is, and should continue to be, in control of his or her assets, data, and financial autonomy, with banks merely serving to assist and safeguard.

For years, regulators forgot that stifling responsible innovation ultimately diminished customer choice. Cutting edge, safely-implemented technologies developed by brilliant entrepreneurial firms were undermined, handicapped, or even punished at the whim of overzealous regulators. That chilling environment has begun to thaw, thanks in no small part thanks to bipartisan efforts in Congress. The GENIUS Act is part of the proof. Pressuring Congress to backtrack on that progress would create uncertainty, set innovation back years, and deprive customers of badly needed choice.