America’s banking sector is growing increasingly uneasy as stablecoins gain legal ground.
With the recent signing of the GENIUS Act by President Donald Trump, the U.S. has taken a major step toward legitimizing stablecoins—sending shockwaves through traditional financial institutions.
The fear isn’t about crypto volatility but about stability itself. If stablecoins become widely adopted, banks could face a dramatic outflow of deposits. A Treasury report estimates the shift could exceed $6.6 trillion, especially if stablecoin platforms offer returns that compete with bank interest rates—even indirectly.
Programs like Coinbase’s 4.10% reward on USDC have already raised eyebrows, with critics arguing they replicate interest-bearing accounts under another name.
Banking groups are calling for stricter limits on stablecoin incentives and demanding regulatory parity. Concerns also extend to whether stablecoin issuers might gain access to Federal Reserve tools without facing the same oversight. If funds migrate from insured accounts to pooled stablecoin holdings, the broader financial system could be exposed to new liquidity and credit risks.
Despite the pushback, some major banks are exploring launching their own stablecoins to avoid falling behind tech firms entering the space. Mastercard, by contrast, appears more collaborative, viewing stablecoins as a tool for streamlining global payments rather than a threat.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
Source: https://coindoo.com/stablecoins-trigger-panic-in-u-s-banks-after-new-law-passes/