Key Takeaways – Senator Cynthia Lummis rejected claims that stablecoins are causing widespread deposit flight from community banks. – Bank of America data showed household deposit balances rising across all income groups in early 2026, though tax refunds partly drove the…
crease. – Lummis said community-bank deposits grew approximately 5%, outperforming the broader banking industry. US Senator Cynthia Lummis has rejected claims that stablecoins are draining deposits from community banks, arguing that available banking data points to continued deposit growth rather than widespread flight into digital dollars
The Wyoming Republican made the case as negotiations over the CLARITY Act intensify following the Senate’s decision to delay a vote until September. Lummis, a prominent cryptocurrency advocate, said defeating the market-structure legislation would preserve a banking system that critics themselves describe as broken. Lummis Challenges Stablecoin Deposit Claims In an X post, Lummis cited Bank of America and Federal Deposit Insurance Corporation data to challenge concerns that stablecoins are weakening smaller lenders.
Bank of America Institute found that household checking and savings balances increased across all income groups during the first five months of 2026. Median deposits rose approximately 15% for lower-income households and 4% for higher-income households, although the bank noted that tax refunds contributed to the increase and balances could decline later in the year. Lummis also said domestic bank deposits had expanded for seven consecutive quarters, with community banks outperforming the wider industry by recording roughly 5% deposit growth.