
Banking groups are urging regulators to address four stablecoin risks under the GENIUS Act: runs, liquidity shocks, contagion, and systemic disruption. Banks argue stablecoins lack deposit insurance and Fed backstops, making them vulnerable even when fully backed. The core conflict centers on deposits, as stablecoins could pull funds from traditional bank accounts.
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Summary by ByteBrief
FDIC Stablecoin Rulemaking Highlights Fight Over Fees, Deposits and Custody