Current data does not support the claim that stablecoin rewards are causing bank deposit outflows. Coinbase Chief Policy Officer Faryar Shirzad pushes back against the American Bankers Association

Odaily News: Coinbase Chief Policy Officer Faryar Shirzad has written an article rebutting the American Bankers Association's concerns about stablecoin rewards, stating that existing data does not support the claim that stablecoin platforms paying rewards will lead to deposit outflows from community banks and weaken local credit. Current law already permits such rewards, and Coinbase has been paying rewards to USDC users for over four years. Faryar Shirzad noted that from June 2019 to March 2026, community bank deposits grew by 26%, an increase of approximately $482 billion; research by Charles River Associates and the Council of Economic Advisers similarly found no significant relationship between stablecoins and bank deposits. The modification the American Bankers Association is requesting does not concern technical details in the CLARITY Act. The current text prohibits users from receiving returns solely for holding idle funds, but allows rewards for genuine activity; the amendment proposed by the American Bankers Association could expand restrictions to ordinary stablecoin use cases, and leave questions such as whether merchant rebates constitute bank interest to be decided by regulators and litigation. Faryar Shirzad calls for maintaining the existing compromise and passing the CLARITY Act, stating that the bill would grant banks new authorities in custody, staking, lending, payments, clearing, and market making.