U.S. banks, led by the Bank Policy Institute, are warning of a potential $6.6 trillion shift in deposits toward stablecoins following the GENIUS Act. This could significantly alter the financial landscape.
Banks' Warning on Deposit Shift
U.S. banks, led by the Bank Policy Institute, have reported a potential shift of $6.6 trillion in deposits toward stablecoins in light of the GENIUS Act. This could disrupt traditional banking structures.
Impact on Credit Markets and Financial Stability
The expected shift could have impacts on credit creation and loan availability. Yield-bearing stablecoins may attract deposits, significantly affecting traditional banks and potentially raising interest rates.
Criticism from the Crypto Industry
Crypto industry leaders criticized the warnings from banks, suggesting they are protecting their own interests. They argue that regulatory frameworks must evolve to accommodate stablecoins.
Such changes may accelerate stablecoin adoption if regulatory gaps persist, significantly impacting traditional finance.
