Stablecoin Rewards Defy Bank Lobbying Claims
The American Bankers Association has been warning that stablecoin rewards will siphon deposits from community banks. However, data shows this isn't happening.
From June 2019 to March 2026, community bank deposits grew by roughly $482 billion, a 26% increase. This growth occurred during the exact period when platforms like Coinbase offered rewards on stablecoin holdings.
Charles River Associates found no statistically significant relationship between stablecoin activity and declines in bank deposits. The White House Council of Economic Advisers reached a similar conclusion independently.
The White House analysis modeled what would happen if stablecoin rewards were banned entirely, concluding that traditional lending would increase by approximately 0.02%, translating to around $2.1 billion. This influx of funds would predominantly flow to larger banking institutions, not community banks as the ABA claims.