The Consultative Council of Depository Institutions of the Federal Reserve System (CDIAC) expressed concern regarding stablecoins issued by non-bank organizations.

The Committee believes that these stablecoins may accelerate the outflow of bank deposits and weaken the ability of public banks to provide loans to small businesses and households.

The Committee compared stablecoins to the impact of money market funds on the banking industry at the end of the 20th century, noting their similarity to central bank digital currencies (CBDC) in potentially diverting the deposit base from the banking system.

It emphasized that current stablecoins are not subject to equivalent liquidity regulatory requirements, which may lead banks to reduce their lending offerings, particularly affecting small borrowers who rely on local banks.

The Committee recommended including stablecoins in the regulatory framework for financial stability, advocating for unified standards for both banking and non-banking issuing institutions to prevent regulatory arbitrage.