Community bank deposits grew by $482 billion since 2019, a 26% increase, directly contradicting the American Bankers Association’s claims that stablecoin rewards threaten deposit bases. Studies by Charles River Associates and the White House Council of Economic Advisers found no statistically significant relationship between stablecoin activity and declines in bank deposits. The GENIUS Act, which took effect on July 18, 2025, prohibits stablecoin issuers from paying interest on their tokens but allows third-party platforms to offer rewards as marketing incentives. The banking industry is now pushing for the CLARITY Act to end those third-party rewards, a move compared to banks’ historical opposition to money market funds in the 1970s.
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