Leaders from regional banking groups have raised concerns that stablecoins could disrupt traditional banking if the CLARITY Act passes without safeguards. Christopher Williston warned that compromising on the legislation could weaken local lending and reduce liquidity that supports regional economies.

Research from Standard Chartered suggests that growing stablecoin adoption could significantly impact the banking system. Analysts estimate US bank deposits could drop by roughly one-third of the stablecoin market’s total value if digital assets begin absorbing funds that would traditionally remain in bank accounts.