The news: A coalition of major US banks is pushing for reforms to the recently enacted GENIUS Act. The banks are concerned that a loophole could give non-bank competitors advantages over more regulated traditional banks, per AInvest. Our take: The main challenge for traditional banks is that they have to compete on a new front with different rules. But it’s also a major risk to their customers, who could not only move their money over to competitors’ accounts—but also lose it. While a 4% reward rate is highly attractive and far exceeds most traditional savings account interest, these stablecoin holdings are not necessarily protected by FDIC insurance. Without this insurance, a platform failure could mean consumers lose their entire investment—a risk that does not exist with a federally insured bank deposit.

The news: We recently covered JPMorgan’s decision to charge fintechs for access to customer data. Fintechs aren’t taking this lightly and don’t appear to be accepting of their fate. Our take: The current situation sets the stage for a battle of the lobbies. With the CFPB unlikely to reinstate stronger open banking regulations for now, fintechs may pivot to launching public education campaigns about how they believe this affects banking customers. This could be a strategic move to rally consumer support and advocate for their perspective on data access and financial choice in the interim. Meanwhile, more banks are likely to follow in JPMorgan’s footsteps—and PNC has already announced it’s considering a similar move, per Bank Automation News.

Stakeholders submitted 11,000 comments during the CFPB’s open banking feedback period—revealing competing interests.

In preparation for impending changes to data sharing in the US, banks have been executing on strategies aimed at positioning them competitively.

Big Tech is lobbying antitrust with big dollars: The biggest technology monoliths collectively spent twice as much as big pharma in lobbying and could gain the upper hand as Congress heads into fall recess

Chamber aligns with Big Tech: The largest US lobbying group is going against the FTC as Big Tech’s new enforcer. Its involvement could make it harder for the government to enforce antitrust laws.

Tech companies are ditching legacy industry lobbying firms like the Internet Association in favor of their own individual approach. The shift allows Big Tech firms to target particular legislation that most specifically affects their products or business practices.