Rodney Walker Calls on Congress to Close GENIUS Act Loophole Affecting Rural Banks and Cash Users

March 13, 2026 - LINEVILLE, Ala. - Rodney Walker, a businessman, cattle farmer, and Republican candidate for the United States Senate from Alabama, is urging Congress and federal regulators to act swiftly to close what he describes as a dangerous loophole in the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). Walker argues the gap in the law threatens community banks, farm lending, and the ability of rural families to rely on cash.

Walker said the issue strikes at the core of rural Alabama's economic stability.

"The heart of rural Alabama is our local banks, our churches, our hometown businesses, and the neighbors who stand by one another," Walker said. "A gap in the GENIUS Act lets crypto platforms pay reward‑style incentives through third parties that aren't subject to the same guardrails as banks. That lures deposits away from community banks, threatens farm and small‑business lending, and exposes hardworking people to uninsured, unregulated risk. I will fight to protect our hometown banks, our cash choices, and the independence of everyday Americans."

Concerns About the Loophole

Walker outlined several areas where he believes the GENIUS Act falls short:

• The law prohibits stablecoin issuers from paying interest directly but does not clearly restrict third‑party crypto platforms from offering reward‑ or yield‑style incentives that compete with insured bank deposits.

• Deposits leaving community banks reduce the funds available for farm loans, small‑business financing, and other services critical to rural economies.

• Funds held on crypto platforms are typically not FDIC‑insured, leaving consumers vulnerable in the event of fraud or platform failure.

• A shift toward a fully digital, cashless system could undermine the informal cash‑based transactions many rural families rely on for side jobs, gifts, and community support.

Walker's Proposed Solutions

Walker is calling for immediate action through either congressional amendment or regulatory guidance. His proposals include:

• Closing the third‑party reward loophole by treating reward payments tied to stablecoins as subject to the same prohibitions, reserve standards, and insurance requirements as traditional bank deposits.

• Strengthening consumer protections and requiring insurance for any digital product that functions like a deposit.

• Implementing safeguards to preserve the ability to use and hold physical cash and to protect small community banks that serve rural regions.

Stakes for Rural Communities

Walker said the consequences of inaction could be significant for Alabama's rural economy.

"If we don't act, community banks will lose deposits, lending will shrink, and our farmers and small businesses will suffer," he said. "This is about common‑sense protections for our neighbors and preserving the way of life that built Alabama."

Walker faces a tough GOP field for Senate in the May 19 Republican field including: Congressman Barry Moore, former Navy Seal Jared Hudson, Dale Shelton Deas Jr., Seth Burton, and Attorney General Steve Marshall.

Additionally Dakarai Larriett, Kyle Sweetser, Everett Wess, and Mark S. Wheeler II are running for Senate as Democrats.

Incumbent Senator Tommy Tuberville is running for Governor.

(Brandon Moseley contributed to this report.)