Community banks warn stablecoin adoption could cut lending by at least $850 billion, ABA and ICBA criticize OCC rules

Odaily report: On October 21, the American Bankers Association (ABA) and the Independent Community Bankers of America (ICBA) criticized the U.S. Office of the Comptroller of the Currency (OCC) over its final rules implementing the GENIUS Act, arguing that restrictions on stablecoin rewards are insufficient and could divert traditional bank deposits and weaken community lending capacity.

The ICBA stated that its economic analysis shows that if payment stablecoins become widely adopted, community bank lending could shrink by at least $850 billion in the future. This figure is a scenario projection put forward by the association, not an realized outcome.

The ABA said the OCC removed proposed safeguards for indirect yield arrangements involving stablecoins, which involve affiliates, exchanges, and other distribution partners. The OCC's final rules cover stablecoin reserves, redemption, custody, and risk management standards. (Bitcoin.com News)