Banking Groups Warn GENIUS Act Could Drain Trillions in Deposits

The American Bankers Association and the Bank Policy Institute filed formal comments warning that the GENIUS Act's stablecoin provisions could drain $2 to $3 trillion in bank deposits within five years by enabling non-bank stablecoin issuers to compete for funds without carrying the same regulatory burden as chartered banks. The groups called for amendments requiring stablecoin issuers to meet equivalent reserve and capital standards.