Community banks in the US are making moves to tighten regulations around stablecoin yields. Their target? The so-called loophole in the GENIUS Act that allows crypto exchanges to offer yield products on stablecoins. Banks argue this creates unfair competition, claiming it directly undercuts their traditional deposit and savings offerings. This regulatory pressure highlights the growing tension between traditional finance institutions and the crypto sector over how yield products should be governed. The debate signals potential shifts ahead in how stablecoins and exchange-based financial services might be regulated in the American market.