GENIUS Act Marks End of Low-Interest Bank Accounts

Multicoin Co-Founder: GENIUS Act Marks End of Low-Interest Bank Accounts

Written by Aaron S.,

Editor-In-Chief

Last Updated: October 06, 2025

Key Takeaways

The GENIUS Act may drive consumers to shift savings from banks to stablecoins offering better returns;
Big tech firms like Apple and Google could soon offer stablecoin services with higher interest and faster payments;
Banks may need to raise interest rates on deposits to compete, which could result in lower profits.

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A recent law focused on stablecoins, known as the GENIUS Act, could lead to changes in how consumers manage their savings, according to Multicoin Capital’s co-founder, Tushar Jain.

Passed in July, the new regulation may encourage more people to transfer their money from banks to stablecoins that offer better returns.

In a post on X on October 4, Jain described the new law as "the beginning of the end" for banks that continue to offer very low interest on deposits.

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He noted that the shift will not only come from crypto-focused firms. Large technology companies, such as Apple, Google, and Meta, may start offering stablecoin services that pay higher interest rates than traditional bank accounts.

Jain said these tech companies also provide faster transactions and payments that work around the clock.

Although the GENIUS Act prohibits stablecoin providers from directly offering interest to token holders, it does not explicitly ban exchanges or related companies from doing so.

In August, US banking organizations responded by asking regulators to close this possible loophole. They are worried that if stablecoins with yield become widely used, banks could lose the customer deposits they rely on to issue loans.

Jain predicts that banks will need to increase interest rates on deposits to stay competitive. However, this could reduce their profits. He said:

Banks are going to have to pay more interest to depositors.

Meanwhile, Wisconsin's Assembly Bill 471 may change how digital asset businesses and individuals are regulated. What does the bill include? Read the full story.