Community bankers are urging U.S. lawmakers to set clear restrictions on yield-bearing stablecoins and warning that regulatory "loopholes" in the recently passed GENIUS Stablecoin Act could lead to trillions of dollars in deposits flowing out of local banks. The American Bankers Association Board of Governors believes this would severely hinder loans to small businesses and families. Conversely, the Blockchain Association argues that banning such incentives would stifle competition, and stablecoins do not lead to excessive bank fund outflows, noting that banks already hold trillions of dollars in Federal Reserve reserves. This issue may be addressed in upcoming broader cryptocurrency legislative discussions.