US banks fear big Tech will skirt stablecoin Rules, study shows

By Vriti Gothi

A vast majority of U.S. banking executives remain deeply concerned that major corporations such as Amazon and Walmart may sidestep new federal regulations to issue interest-bearing stablecoins, according to survey released by FinTech infrastructure provider IntraFi.

The findings come just weeks after the enactment of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act, which aims to establish a regulatory framework for U.S. dollar-backed stablecoins.

Signed into law on July 18, the GENIUS Act explicitly prohibits stablecoin issuers from offering interest or financial incentives to encourage adoption. However, IntraFi’s Q2 2025 Bank Executive Business Outlook Survey revealed that 96 percent of bank executives fear large nonbank entities will find ways around these restrictions, introducing yield-bearing stablecoins that could draw customer deposits away from the banking system.

Mark Jacobsen, Co-founder and CEO of IntraFi, said, “Bankers recognize the intent behind the GENIUS Act, but there’s skepticism about its effectiveness. Concerns are high that nonbank corporations will find a way to offer yield, creating potential competitive pressures for traditional banks.”

Despite the high-profile entry of institutions like J.P. Morgan Chase, Goldman Sachs, and BNY Mellon into the stablecoin and digital deposit space, the report noted that more than half of the banks surveyed 52 percent have no immediate plans to develop or offer similar products. The tepid pace of adoption highlights the regulatory uncertainty and perceived risks that continue to surround bank-issued digital assets.

In addition to digital asset concerns, the survey identified growing challenges related to financial fraud, especially with regard to fraudulent checks. Eighty-two percent of executives cited delays or a lack of cooperation from the bank of first deposit as a significant impediment in resolving fraud cases. Furthermore, 68 percent said they struggled to secure reimbursements, and 60 percent admitted that their banks often reimbursed customers even when not legally required to do so.

There was also strong consensus on the need for clearer regulatory guidance to streamline fraud resolution. A large majority of banking leaders expressed support for new rules that would explicitly define liability for customer reimbursement, while also advocating for greater interbank cooperation and data sharing to combat fraud more effectively.

The quarterly survey, which collected responses from 455 executives including CEOs, CFOs, COOs, and bank presidents across the U.S., offered further insights into the sector’s short-term outlook. A growing number of bankers now anticipate stronger loan demand and expect funding costs to fall in the coming year, though uncertainty around Federal Reserve interest rate policy remains a limiting factor. Competitive pressure for deposits is expected to persist, with nearly all respondents forecasting steady or increased competition. While access to capital remains relatively stable, only 29 percent of respondents expressed confidence in a broadly improving economic environment over the next twelve months, reflecting a cautious optimism across the sector.

IntraFi’s report comes at a time when the intersection of FinTech innovation, regulatory intervention, and traditional banking stability is under renewed scrutiny. As stablecoins continue to evolve and fraud-related risks rise, the survey underscores the balancing act banks must perform between embracing innovation and protecting core banking functions.