Top U.S. Regulator Dismisses Stablecoin ‘Bank Run’ Threat as Market Soars Past $300B

The head of the ￰1￱ of the Comptroller of the Currency (OCC), Jonathan Gould, has rejected fears that stablecoins could trigger a sudden banking crisis, describing the risk of a deposit run as overstated and unlikely to occur without ￰2￱ at the American Bankers Association (ABA) Annual Convention in Charlotte on October 19, Gould told attendees that any large movement of deposits linked to stablecoins “would not happen in unnoticed fashion” and “would not happen overnight.” Happening this AM at #ABAAnnual in Charlotte: Opening remarks from @BankersPrez Welcome from NC Bankers CEO Peter Gwaltney Remarks from @NC_Governor @USOCC outlook from @USComptroller Gould Capitol Hill update from @SenTedBuddNC Watch ￰0￱ — American Bankers Association (@ABABankers) October 20, 2025 His comments come amid growing friction between federal regulators and traditional banking groups over the rise of stablecoins, digital tokens pegged to fiat currencies such as the ￰3￱ market has expanded sharply this year, rising from $205 billion in January to over $307 billion, according to DeFiLlama .

Tether’s USDT controls roughly 59% of the market, followed by Circle’s USDC.) August 13, 2025 In a joint letter, the Bank Policy Institute, Consumer Bankers Association, Independent Community Bankers of America, and Financial Services Forum said yield-bearing stablecoins could drain as much as $6.6 trillion from traditional banks, citing estimates from the ￰4￱ argued that such outflows could push up interest rates, reduce loan availability, and raise borrowing costs for households and businesses. “Payment stablecoins should not pay interest the way highly regulated and supervised banks do,” the letter stated, emphasizing that stablecoin issuers do not lend or invest in securities to generate returns.