Back to Treasury warns stablecoin loophole could threaten $6.6 trillion in bank deposits
b29e6697-962c-47c9-b3b2-d84fdda27ec9
Easy
true false
If insured deposits erode due to stablecoin outflows, banks may respond by tightening their lending standards.
Explanation
Loss of core deposits reduces banks" funding, which typically leads them to tighten credit to preserve capital and liquidity.
Related Questions
The GENIUS Act includes dual-supervision rules that may allow nonbank stablecoin issuers access to Federal Reserve facilities.
Easytrue falseOn what date did the House of Representatives pass the GENIUS Act, prompting bank warnings about stablecoin risks?
Easymultiple choiceTrue or false: The FDIC insurance limit per depositor is $250,000.
Easytrue false
2 more questions available with Premium
Unlock All QuestionsThis question is part of Treasury warns stablecoin loophole could threaten $6.6 trillion in bank deposits. 5 more questions available.