US senator: Interest-bearing stablecoins pose risk of bank deposit outflows

U.S. Senator Angela Alsobrooks voiced concerns about interest-bearing stablecoins during a Senate Banking Committee hearing on bank regulation. According to The Block, Alsobrooks stated that while she supports innovation, she is worried that stablecoins could offer products similar to bank deposits without the same safeguards or regulations. She highlighted the potential for these products to cause deposit outflows from traditional banks and emphasized that lawmakers should take the concerns of community banks on this issue seriously.