Blockchain Association Refutes Claims of Deposit Losses by Major Banks

The Blockchain Association has rebutted the claims made by major banks to Congress that "stablecoins will lead to a loss of deposits in community banks," arguing that there is a lack of supporting evidence and that the evidence of major banks continuously eroding the deposit share of community banks is evident. According to FDIC data, as of 2023, non-community banks (major banks) hold at least 87% of domestic deposits in the United States, while community banks account for only 13%; the combined deposit share of JPMorgan Chase and Bank of America exceeds 1.5 times the total of the entire community banking sector. The Blockchain Association pointed out that since the signing of the "GENIUS Act" on July 18, 2025, U.S. bank deposits have not shrunk but have instead accelerated growth quarter by quarter: an increase of $92.2 billion in the third quarter of 2025, $318.3 billion in the fourth quarter, and $389.7 billion in the first quarter of 2026, refuting the claim that stablecoins are eroding the deposit pool. An analysis by CRA International of data from 2019 to 2025 shows that there is no significant correlation between the growth of stablecoins and the outflow of deposits from community banks, with an impact of less than 1%. The Blockchain Association believes that if Congress is concerned about the flow of deposits from community banks, it should focus on the trend of funds concentrating in major banks and money market products, rather than the approximately $300 billion stablecoin market.

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