Blockchain Association: Large banks are the real losers of community bank deposits According to Foresight News, the Blockchain Association has tweeted a rebuttal to the claim made by large banks to Congress that "stablecoins will lead to the loss of deposits in community banks," arguing that this claim lacks evidence to support it, and that the evidence of large banks continuously eroding the share of deposits in community banks for decades is clearly reflected in FDIC data. According to FDIC data as of 2023, non community banks (i.e. large banks) hold at least 87% of domestic deposits in the United States, while community banks only account for 13%; The combined deposit share of JPMorgan Chase and Bank of America alone exceeds 1.5 times the total of the entire community banking industry. The Blockchain Association pointed out that since the signing of the GENIUS Act on July 18, 2025, bank deposits in the United States have not shrunk, but have accelerated quarter by quarter: they increased by $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, which contradicts the claim that stablecoins erode deposit pools. The Blockchain Association also stated that current laws allow for stablecoin reward mechanisms, and US exchanges have been rewarding USDC payments for over 4 years without causing community bank deposits to collapse. CRA International's analysis of seven-year data from 2019 to 2025 shows that there is no statistically significant correlation between the growth of stablecoins and the outflow of community bank deposits. Even assuming the worst-case scenario, the impact is less than 7%, and in reality, the impact is less than 1%. The market value of stablecoins and community bank deposits generally change in the same direction. Blockchain Association believes that the yield of money market funds, treasury bond and large deposit certificates has been higher than that of current accounts for many years, but has not led to the loss of deposits. If Congress is really worried about the flow of community bank deposits, it should focus on the trend of funds concentrating on large bank fund management platforms and currency market cleaning products over the decades, rather than the stable currency market with a scale of about 300 billion dollars.