Cyndie Romer is a Democrat serving Newark in the House of Representatives.
In Delaware, our economy thrives on a level playing field. From manufacturers in our industrial parks to the family-owned restaurants on Main Street in Newark, our success is built on trusted partnerships and stability. That is why a gap in the federal Guiding and Establishing National Innovation for U.S. Stablecoins Act has raised alarms for those of us focused on Delaware’s economic health.
The GENIUS Act aims to create federal rules for “payment stablecoins.” It rightly includes restrictions intended to prevent these digital assets from being marketed like interest-bearing bank accounts. However, a dangerous gray area remains. While the bill targets issuers of stablecoins, it does not clearly prevent intermediaries — such as crypto platforms, exchanges, apps and wallets — from offering “rewards,” “rebates” or other incentives for holding stablecoins on their platforms.
In plain English: The law bans the “interest” but may still allow the workaround.
This matters because stablecoins are not money in a bank. Deposits held at Federal Deposit Insurance Corp.-insured banks come with federal deposit insurance (up to legal limits) and operate within a long-established system of supervision and consumer protections. Stablecoins don’t come with that same safety net. When a product looks like cash and is marketed as a savings alternative, consumers naturally assume it carries the same protection. It doesn’t.
This isn’t just a consumer protection issue; it’s a threat to our local economy. When deposits leave community banks for nonbank crypto platforms, the consequences ripple outward.
Community banks rely on stable deposits to fund loans that help Delaware companies buy equipment, renovate storefronts, start businesses and secure mortgages. Community banks help families trying to secure mortgages, home equity loans or lines of credit to support major life milestones. If large crypto platforms lure customers away with interestlike “rewards,” while not carrying the same obligations as banks, local lending capacity will shrink. Independent Community Bankers of America has estimated that widespread deposit shifts toward stablecoins could reduce community bank lending by hundreds of billions of dollars. That isn’t an abstract number. It means fewer small-business loans and fewer paths to homeownership for Delaware families.
We also need to be honest about risk. Pew Research has found that a large majority of Americans have little to no confidence in the safety of cryptocurrencies. That skepticism is well earned. Crypto consumers can face platform failures, fraud and frozen accounts without the protections people associate with insured banking. Families should not have to learn the hard way that a promise of backing doesn’t always translate into immediate access during a crisis.
I am calling on Congress, specifically Sen. Lisa Blunt Rochester, D-Del., a member of the Senate Banking, Housing and Urban Affairs Committee, to close this gap. Closing this gap isn’t anti-innovation; it is pro-consumer and pro-Delaware. Our leaders should reinforce the protections that families and businesses depend on and ensure that the GENIUS Act supports innovation without sacrificing financial stability.
Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.
