Alabama State Senator Keith Kelley has warned that the GENIUS Act , signed into law on July 18, 2025, could trigger a wave of deposit outflows that would hurt rural community banks.

According to reports , Kelley set out his concerns in an op-ed for 1819 News, arguing that a perceived gap in the law could let crypto platforms offer yields or rewards that pull funds away from local lenders.

The warning comes as public comment periods have already opened at the US Treasury, and regulators are expected to write the rules that make the new law operational.

GENIUS Act: Senator Warns Of Deposit Flight

Financial experts say the worry centers on how “comparable supervision” will be defined. If foreign or nonbank stablecoin issuers are treated as having comparable oversight when regulato

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