🏦Banks warn of trillions fleeing to stablecoins under GENIUS Act
Economy
Public Policy
Technology & Innovation
After the House passed the GENIUS Act on July 17, 2025, major banks cautioned that stablecoins could siphon off trillions in uninsured deposits, threatening traditional lending models. The new law’s reserve and dual-supervision rules may give nonbank issuers access to Federal Reserve facilities, altering liquidity flows. These shifts could reshape deposit insurance frameworks and monetary policy transmission.
Review Topic
Test your knowledge with interactive questions
10 questions
5:00
20 available
Key Takeaways
Influential Figures
No influential figures found.
Some topics may not have prominent individuals directly associated.
Why This Matters
Uninsured deposit gap
Banks warn up to $1.3 trillion in customer deposits could flow into stablecoins, dwarfing the FDIC’s $125 billion limit and risking your savings if a bank fails.
Tighter loans
If banks lose $800 billion in deposits next year, they could cut $300 billion in small business and home loans, potentially bumping mortgage rates by 0.4% and raising your monthly<
What Others Are Asking
No Questions Yet
Be the first to ask
Detailed Content
3
Match each date to the corresponding GENIUS Act milestone:
Matching
Public Policy
4
5
What primary risk did major banks highlight following passage of the GENIUS Act?
Multiple Choice
Economy
7
The GENIUS Act’s two main rule categories for stablecoin issuers are:
Multiple Choice
Public Policy
8
Which benefit of stablecoin growth did supporters highlight under the GENIUS Act?
Multiple Choice
Technology & Innovation
9
What reserve requirement does the GENIUS Act impose on payment stablecoin issuers?
Multiple Choice
Public Policy
10
Under the GENIUS Act, payment stablecoins are carved out from oversight by which federal agencies?
Multiple Choice
Public Policy
12
13
Which Trump appointee reversed previous crypto banking restrictions while maintaining financial interests in the industry?
Multiple Choice
Digital Rights & Cybersecurity
14
How much did large banks pay into the FDIC fund to cover the costs of bailing out deposits that saved Circle's stablecoin?
Multiple Choice
Ethics & Government Accountability
18
True or false: The GENIUS Act mandates monthly public disclosures by stablecoin issuers.
True/False
Public Policy
19
True or false: The FDIC insurance limit per depositor is $250,000.
True/False
Economy