U.S. community banks are urging the Senate to address a loophole in the GENIUS Act that allows stablecoin-related entities to offer yields to users. The Community Bankers Council, part of the American Bankers Association, has called for legislation to explicitly prohibit stablecoin issuers' affiliates or partners, such as exchanges, from providing yield or interest to users. This move aims to prevent stablecoins from indirectly offering interest through third parties, which could undermine community banks' deposit and lending capabilities. The Banking Policy Institute has echoed these concerns, warning that failure to close this loophole could lead to a potential $6.6 trillion outflow of deposits. The GENIUS Act currently bans stablecoin issuers from directly paying interest, but some exchanges continue to offer rewards to stablecoin holders, posing a threat to traditional banking operations.