OCC Tracks Stablecoin Risks to Community Bank Deposits as Effects Remain Unclear

The Office of the Comptroller of the Currency (OCC) is monitoring whether stablecoin adoption may draw deposits from community banks, while the effect on those lenders’ funding remains uncertain.

Estimates of stablecoins’ impact on community-bank deposits vary widely. The OCC’s focus is on possible deposit outflows as payment innovation advances.

The agency previously issued guidance under the GENIUS Act for community banks. That guidance tied issuer requirements to business models and risk profiles, and bank examinations to each institution’s size and complexity.