Stablecoin Boom Triggers $6 Trillion Banking Crisis Concerns Amid Regulatory Disputes
- Stable's deposit pre-activation event raised $860M by Nov 7, with $500M cap triggering proportional distribution if exceeded. - Canada's 2025 stablecoin framework mandates 100% reserve backing and $10M+ oversight funding to prevent depegging risks. - U.S. banks warn $6T deposit outflows could destabilize banking if interest-bearing stablecoins are permitted, clashing with crypto firms like Coinbase . - Regulatory tensions highlight global challenges balancing stablecoin innovation with financial stabilit
Blockchain records indicate that by November 7, Stable's second round of its deposit pre-activation initiative had raised over $860 million, as detailed in a
The swift rise in participation highlights the growing appetite for stablecoins, now a vital part of the digital asset landscape. This momentum, however, has also attracted the attention of regulators. Canada’s 2025 federal budget unveiled
At the same time, regulatory debates are intensifying in the United States. The American Bankers Association (ABA) and 52 state banking associations have called on the Treasury Department to enforce the GENIUS Act’s prohibition on stablecoin interest, cautioning that easing this restriction could threaten the stability of the banking sector, according to
This ongoing discussion illustrates the broader struggle to balance financial innovation with effective oversight. While Canada’s approach focuses on reserves and security, the U.S. debate exposes the friction between crypto companies and established banks over regulating interest-bearing stablecoins. The GENIUS Act, passed in July 2025, seeks to build confidence in stablecoins through reserve mandates and audits, but its implementation—anticipated by late 2026—remains contentious.
With stablecoins now facilitating 30% of all crypto transactions worldwide, both regulators and industry leaders are navigating a rapidly evolving environment. Canada’s forward-looking stance and the regulatory disputes in the U.S. mark a critical juncture for the industry, as the direction of oversight will play a decisive role in shaping the future of digital finance.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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