A growing number of US community banks are pressing lawmakers to tighten the GENIUS Act, targeting what they see as a critical regulatory gap: stablecoin issuers using major exchanges—like Coinbase and Kraken—to offer yield products directly to consumers. The concern runs deep. Community lenders worry about significant deposit migration, especially if yields on stablecoins become more attractive than traditional savings options. This exodus could constrain their ability to fund small business lending, the backbone of local economies. JPMorgan has flagged the broader systemic risk, estimating potential exposure at $6.6 trillion. Meanwhile, the crypto industry is pushing back hard, viewing stricter stablecoin regulation as overreach that stifles innovation. The tension between protecting traditional financial stability and enabling blockchain-native financial products shows no signs of cooling.