BREAKING NEWS: US banks push back against stablecoins, warn of trillion-dollar risk

• Stablecoins could drain up to $6,6 trillion in deposits
• Banks pressure Congress to limit cryptocurrency expansion
• Tether and Circle dominate 90% of the stablecoin market

Major U.S. banks have stepped up their warnings about the rapid growth of stablecoins, arguing that these digital assets could drain trillions of dollars from bank deposits. According to Wall Street financial associations, the migration of funds into stablecoins could reach up to $6,6 trillion, impacting credit capacity and raising borrowing costs for consumers and businesses.

Industry experts point out that the situation is reminiscent of the 1980s, when money market funds began to compete directly with bank deposits. In this new context, analysts say lenders would have to raise deposit rates or resort to more expensive wholesale financing, something that would primarily affect community banks.

Smaller lenders, in fact, have called the recently passed GENIUS Act a direct threat to the survival of these institutions. Banks are now lobbying Congress to amend the legislation to prevent cryptocurrency companies from offering attractive returns or expanding state-chartered bank operations nationwide.

Meanwhile, cryptocurrency advocates accuse banks of simply trying to protect their territory, arguing that stablecoins bring innovation, efficiency, and more options to consumers. The dispute goes beyond stablecoins and also includes the tokenization of assets and rights to financial data.

With US public debt exceeding $37 trillion, issuers like Tether and Circle are gaining relevance in the Treasury market, reinforcing the role of stablecoins as major buyers of Treasury securities. The new law requires issuers to back their tokens with dollars or high-quality liquid assets, placing short-term Treasuries at the center of the collateral.

"A well-regulated stablecoin market could cement the US dollar's dominance in the digital finance world," HSBC analysts wrote in a recent report. Scott Bessent noted: "Stablecoins will expand access to dollars for billions of people worldwide and lead to increased demand for US Treasury securities, which back stablecoins."

Currently, Tether (USDT) and USD Coin (USDC) account for about 90% of the stablecoin market, valued at $250 billion in 2025. Projections indicate that this market cap could reach between $1,2 trillion and $2 trillion by 2028, with some analyses pointing to as much as $4 trillion by 2035.