2026-04-17 Sexta

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Will The GENIUS Act Shift $6.6T From US Banks? Critics Warn Stablecoin ‘Loophole’ Could Damage Small Businesses, Mortgages and More

A coalition of banking groups warns that a perceived "loophole" in the GENIUS Act could put up to $6.6 trillion in U.S. bank deposits at risk, potentially undermining community lending that supports small businesses, homebuyers, and local economies. The dispute centers on the Act’s ban on stablecoin issuers paying interest or yield directly to holders, which was intended to prevent stablecoins from competing with bank deposits. However, critics argue that some issuers are circumventing this by indirectly funding rewards through exchanges and partners. Banking associations, including the Bank Policy Institute, urge lawmakers to clarify that all forms of inducements—direct or indirect—should be prohibited. They warn that without this, stablecoins could incentivize customers to move savings out of banks, jeopardizing traditional lending. Crypto advocates and industry groups strongly reject these concerns, calling them a "last-ditch effort" by big banks to block competition. They argue there is little evidence that stablecoins threaten the banking system and that rewards benefit everyday users. Pro-crypto figures also warn that tightening the law could have geopolitical consequences, potentially pushing users toward foreign alternatives like China’s Digital Yuan. The stablecoin market, led by Tether’s USDT and Circle’s USDC, has grown to nearly $318 billion, partly driven by reward programs. Banking groups view these incentives as blurring the line between payment tools and deposit-like products, while crypto advocates see them as legitimate competitive features. If lawmakers restrict these rewards, the sector’s growth could slow significantly.

ccn.com01/08 10:55

Will The GENIUS Act Shift $6.6T From US Banks? Critics Warn Stablecoin ‘Loophole’ Could Damage Small Businesses, Mortgages and More

ccn.com01/08 10:55

Xianyu, China's Version of the Folk Dark Web

The article "Xianyu: China's Folk Dark Web" explores the unconventional and often hidden digital marketplace on Xianyu, a second-hand goods platform, where users trade restricted or sensitive services through coded language and images to evade oversight. It details how cryptocurrencies like USDT are traded using veiled terms, and how services such as fake overseas IDs (e.g., Palau, Nigeria) for bypassing KYC checks on exchanges are sold. The piece highlights the case of a wealthy crypto influencer selling low-cost tutorial services to recruit users for commission-based schemes. Beyond crypto, Xianyu serves as a hub for accessing restricted AI tools like ChatGPT, Claude, and Gemini. Sellers exploit policy loopholes (e.g., student or military discounts) to offer accounts and subscriptions at low prices, making advanced AI models accessible to many Chinese users despite regional barriers. The platform also hosts absurd yet real services, such as hiring elderly people to confront employers over unpaid wages or providing fake death certificates to cancel flight tickets. These transactions reveal a raw, pragmatic side of internet culture where users seek solutions outside formal channels. However, the article warns of risks: some listings openly trade personal KYC-verified exchange accounts, potentially enabling fraud or money laundering. While Xianyu embodies grassroots ingenuity in circumventing restrictions, it also becomes a space where convenience blurs into ethical and legal gray areas—ultimately reflecting both the resourcefulness and vulnerabilities of digital life in China.

marsbit01/08 10:08

Xianyu, China's Version of the Folk Dark Web

marsbit01/08 10:08

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