Edgen Stock·Sep 18 2025, 14:01Coinbase is publicly refuting claims from traditional banks that stablecoins pose a substantial threat to their deposit base, framing the dispute as a battle over significant payment processing fees. This ongoing tension highlights a critical juncture in the regulatory and competitive landscape between cryptocurrency and traditional financial institutions.
The digital asset sector is witnessing an intensifying debate as Coinbase publicly refutes claims from traditional banking institutions that stablecoins pose a significant risk of draining trillions of dollars from their deposit bases. This dispute underscores a growing chasm between the crypto industry and established financial entities, primarily centered on regulatory influence and the future of payment fees.
Several prominent U.S. banking groups, including the American Bankers Association and the Bank Policy Institute, have voiced concerns, citing U.S. Treasury Department estimates that stablecoins could lead to more than $6 trillion in deposit outflows from traditional banks. This projection suggests a potential destabilization of bank balance sheets and an impairment of their lending capabilities.
In response, Coinbase (COIN), a leading cryptocurrency exchange, has categorically rejected these warnings. Faryar Shirzad, Coinbase's Chief Policy Officer, argues that the banking sector's alarm is not about deposit erosion but rather an attempt to safeguard their estimated $187 billion in annual payment fee revenue. Shirzad contends,
