As Congress prepares to return from its winter recess, negotiations over another round of legislation to regulate the crypto industry are heating up. Whether Republicans and Democrats on the Senate Banking Committee can reach an agreement remains an open question. That is unfortunate, because among the issues that still need to be addressed, one of particular importance is the impact of crypto on lending to underserved communities.
Rural areas, inner cities, and economically disadvantaged communities rely heavily on community banks, typically defined as those with less than $1 billion in assets, for access to capital, credit, and basic financial services. Lawmakers on both sides of the aisle have long recognized this reality, which is why despite partisan differences they have supported initiatives such as the New Markets Tax Credit to expand capital and credit in underserved areas.
Protecting this lifeline of credit and capital is also a key reason behind the prohibition on stablecoins offering interest to customers, enacted as part of the GENIUS Act.
