The head of the U.S. Office of the Comptroller of the Currency (OCC), Jonathan Gould, has downplayed concerns that stablecoins could spark a sudden and destabilizing run on traditional bank deposits. Speaking at the American Bankers Association’s Annual Convention in Charlotte, Gould reassured banking executives that a large-scale deposit outflow triggered by stablecoins is unlikely to occur without warning or oversight.
Gould emphasized that any significant movement of funds from banks to digital assets like stablecoins would not be instantaneous or invisible. “A material deposit flight would not happen overnight, nor would it go unnoticed,” he remarked during his keynote speech. His comments come at a time when some banking industry leaders are pressing lawmakers to address what they see as regulatory loopholes in existing legislation—particularly in the GENIUS Act—that allow certain stablecoin issuers to offer yield-bearing products without the same level of oversight applied to banks.
Some banking groups argue that these provisions give crypto firms an unfair competitive edge, enabling them to attract customers away from traditional financial institutions without undergoing comparable regulatory scrutiny. They have called on Congress to tighten the rules, ensuring a level playing field and protecting consumers from potential risks tied to unregulated digital assets.
Despite these concerns, Gould encouraged community banks to think strategically about how they might incorporate digital assets into their own offerings. Instead of viewing stablecoins as threats, he suggested they could serve as innovative tools to help smaller financial institutions compete with larger Wall Street players.
Gould’s measured tone stands in contrast to the more alarmist rhetoric from some segments of the industry. While acknowledging that innovation in financial technology poses challenges, he stressed that regulators are actively engaged in monitoring the space. According to him, the OCC is working closely with other regulatory bodies to better understand the implications of stablecoins and digital currencies on the broader financial ecosystem.
He also hinted at the need for clearer legal frameworks to govern the use of stablecoins. “We need to ensure that financial innovation does not outpace the protections afforded to consumers and the soundness of our banking system,” Gould added.
This conversation comes amid broader debates in Washington about the role of digital assets in the U.S. economy. Lawmakers have been considering several pieces of legislation aimed at regulating stablecoins, which are digital tokens typically pegged to fiat currencies like the U.S. dollar. These tokens are increasingly being used for payments, remittances, and decentralized finance applications.
Concerns about a “bank run” scenario stem from the possibility that widespread adoption of stablecoins could drain traditional bank deposits, potentially destabilizing smaller banks. However, Gould’s remarks suggest that regulators are confident in their ability to detect and respond to such shifts before they reach crisis levels.
In addition to addressing policy concerns, Gould also highlighted the importance of technological adaptation in the banking sector. He encouraged financial institutions to explore how blockchain technology and tokenization could enhance their services, reduce transaction costs, and improve accessibility.
Moreover, Gould pointed out that stablecoins themselves are not inherently dangerous. Rather, it is the regulatory arbitrage—where different entities operate under inconsistent rules—that poses the greater risk. “It’s not about banning innovation,” he said. “It’s about ensuring the rules are applied fairly and consistently.”
As the digital asset landscape continues to evolve, the OCC is expected to issue further guidance on how banks can safely engage with crypto technologies. This may include clarity around custody services, anti-money laundering compliance, and capital requirements related to digital assets.
Looking ahead, many analysts anticipate that regulatory clarity will ultimately benefit both banks and crypto firms by providing a more predictable environment for innovation and competition. In the meantime, financial institutions are being urged to assess their digital strategies and consider how they can adapt to meet the needs of a new generation of customers.
Gould’s remarks serve as a reminder that while the rise of stablecoins and digital finance tools presents new challenges, it also opens doors for modernization within the traditional banking system. Rather than retreating from innovation, banks may find value in forging partnerships with fintech companies, exploring blockchain applications, and even issuing their own tokenized products under prudent regulatory oversight.
Finally, the OCC chief reiterated the agency’s commitment to working collaboratively with the industry to foster innovation while maintaining the safety and soundness of the financial system. “We are not here to stifle progress,” Gould concluded. “We are here to ensure that progress benefits everyone—and that it does so responsibly.”