AMERICA NEEDS FINANCIAL FREEDOM, NOT MORE REGULATION

The passage of the GENIUS Act in July was a major victory for the cryptocurrency industry. It provided a structure for holders of stablecoins, dollar-backed digital tokens. Stablecoins function as digital cash, allowing people and businesses to move money faster and cheaper, while strengthening the U.S. dollar in the digital economy.

The legislation allowed innovation, protected consumers, and reinforced the dollar’s global leadership. It was supported by Louisiana Senator John Kennedy and President Donald Trump, who has emphasized the need for the United States to lead the world in digital currency innovation. The GENIUS Act was a major win for the United States, which is engaged in an economic battle against the communist government of China.

Unfortunately, in the aftermath of the bill’s passage, the banking industry began lobbying Congress to restrict the rewards paid to stablecoin holders. While the GENIUS Act regulated stablecoins, it included a provision allowing consumers to earn rewards on crypto holdings, like those offered by credit card companies.

Rewards encourage platforms to compete and are pro-consumer. Congress would never consider banning credit card rewards, so there should be no bans on cryptocurrency rewards, which would eliminate a valuable consumer right. Removing these rewards would give China a victory. Recently, the People’s Bank of China announced it would start paying interest on the Digital Yuan to attract more customers to its currency.

All these factors are important as Senator Kennedy and the other members of the U.S. Senate Banking Committee prepare to vote on the next step: market structure legislation that will provide regulatory clarity for the entire cryptocurrency industry. This is what will keep innovation, investment, and well-paying jobs here in America.

Any restrictions on these rewards for stablecoin holders will limit Americans' financial freedom. Such a possibility has alarmed the Blockchain Association, composed of 125 leaders in the cryptocurrency industry, which has urged the committee not to revisit the language of the GENIUS Act. In a recent statement, the Blockchain Association noted, “Congress prohibited stablecoin issuers from paying interest or yield to those holding stablecoins, while intentionally preserving the ability of platforms, intermediaries, and other third parties to offer lawful rewards or incentives to consumers…That distinction was not accidental.” The banks argue that stablecoin rewards will lead Americans to withdraw deposits from community banks and purchase stablecoins, thereby limiting their ability to issue loans.

However, there is no evidence that the worries are valid. In fact, an analysis from Charles River Associates found no significant relationship between stablecoin adoption and deposit levels at community banks. In addition, as the Blockchain Association stated, “it is difficult to reconcile claims that banks are genuinely constrained by deposits.” Currently, banks hold $2.9 trillion in balances at the Federal Reserve. These funds are generating interest rather than being used for loans.

This debate is especially important in Louisiana, which was the first state to accept cryptocurrency for government services. Louisiana set the standard for putting innovation into action. Today, one in seven Louisianans owns cryptocurrency, including nearly 40% who are under 35. These Louisiana investors are mostly from working-class families, with the majority earning under $100,000 a year. These statistics show that the people of Louisiana have embraced this economic revolution and President Trump’s goal to make America the “crypto capital of the world.”

Consumers in Louisiana and nationwide need choice and innovation, not unnecessary regulation. The next step after the GENIUS Act, market structure legislation, is a historic opportunity to cement the President’s agenda and legacy. Sadly, banks are lobbying the Senate Banking Committee to obstruct the President’s agenda and risk the accomplishments of the GENIUS Act. For our American economy to truly thrive, we must allow free markets to function properly, with both digital assets and traditional banking working together and complementing each other.

President Trump has made it clear that he values individual freedom, including financial freedom. He is also insistent that America must lead the world on digital assets. Louisiana Senator Kennedy stood with President Trump and supported the GENIUS Act. Now is the time to finish the job: reject special carve-outs for big banks, protect consumer rewards, and deliver a market structure that unlocks American innovation.