Community banks in the US are pushing Congress to strengthen the GENIUS Act, citing concerns that stablecoin rewards offered by crypto exchanges are exploiting regulatory gaps. The issue? While stablecoin issuers themselves face restrictions on offering yield, exchanges have found a workaround—compensating users for holding these assets directly. This loophole threatens to siphon deposits away from traditional banks. It's a classic arbitrage situation: yield-hungry depositors migrate capital where returns are better, leaving regional banks struggling. The regulatory pressure is mounting as lawmakers recognize the competitive imbalance.