The Bank of Italy said in a July analysis that key differences between US and EU stablecoin rules could create direct competition between stablecoins and bank deposits. The report pointed to the US GENIUS Act, which allows third parties to offer yield on stablecoins, while the EU’s Markets in Crypto-Assets regulation, or MiCA, explicitly bans that practice. Deputy Governor Paolo Angelini said on July 9 that MiCA bars interest payments to stablecoin holders in order to preserve a structural separation from bank deposits. Under the GENIUS Act, by contrast, restrictions apply to issuers, but third parties may still provide yield. The analysis warned that if such products reach scale, customers could shift liquidity away from banks and into stablecoins, weakening banks’ credit base and affecting monetary policy.
Techub News reported that a July analysis from the Bank of Italy identified a key regulatory split between the United States and the European Union on stablecoins, saying the difference could lead US stablecoins to compete directly with bank deposits.
The analysis said the US GENIUS Act allows third parties to provide yield on stablecoins, while the EU’s Markets in Crypto-Assets regulation, or MiCA, explicitly prohibits it.
How MiCA and the GENIUS Act differ
Paolo Angelini, deputy governor of the Bank of Italy, said on July 9 that MiCA bans interest payments to stablecoin holders to preserve a structural separation between stablecoins and traditional bank deposits. The GENIUS Act, in contrast, restricts issuers, but still allows third parties to offer yield.
What the analysis warned about
The analysis said that if products of this kind scale up, customers may move liquidity from banks into stablecoins. That, it warned, could weaken the funding base for bank lending and affect monetary policy.
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