Washington, D.C. (May 8, 2025) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement ahead of a scheduled Senate vote on the GENIUS Act, which would establish a federal regulatory framework for stablecoins.

“On behalf of the nation’s community bankers, ICBA urges the Senate to ensure the GENIUS Act provides regulatory clarity while including necessary guardrails to protect against the negative economic consequences that would result from community bank disintermediation. ICBA reiterates our concerns outlined for the Congress since the beginning of this debate. With community banks using deposits to make 60% of the nation’s small-business loans and 80% of banking industry agricultural lending, mitigating the risk of retail deposits migrating out of community banks — which have proven commitments to their communities and local credit creation — is critical. With a vote on the GENIUS Act scheduled for today, we strongly urge the Senate to ensure these concerns are addressed.

“ICBA understands the importance of having a clear regulatory framework for stablecoins given the significant implications this sector can have on consumers and our payments system. Congress should strengthen the prohibition on yield-bearing stablecoins to ensure the intent of the legislation cannot be evaded. Without these limits, Congress would incentivize the migration of retail deposits to stablecoins — which don’t offer the same consumer protections — inhibiting community bank lending, increasing borrowing costs, and impairing credit availability.

“The activities of stablecoin issuers must also be limited to avoid an open-ended grant of authority that could allow issuers to further expand into bank activities, putting consumers and the safety and soundness of our financial system at risk.

“Further, it is critical that lawmakers ensure nonbank issuers are not permitted to obtain Federal Reserve Master Accounts or maintain reserves in an account at the Federal Reserve, which would effectively create a pass-through central bank digital currency — increasing disintermediation risk, jeopardizing the integrity of the U.S. payments system, and restricting access to credit in local communities.

“Lastly, maintaining the separation of commerce and banking is critical to our financial system. Legislation should not allow big tech or other non-financial firms to leverage stablecoins and dominate the payments system.

“We appreciate the strong support the Senate has shown for community banking and the engagement we have had with the Senate throughout this debate to address these and other key issues. We look forward to continuing to work with lawmakers as this debate continues to ensure community banks can continue meeting the financial services needs of local communities nationwide.”

About ICBA

The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.