Regulatory ambiguity surrounding stablecoins is creating challenges for traditional banks, potentially widening their disadvantage compared to crypto companies. Colin Butler of Mega Matrix highlighted that banks are hesitant to invest in stablecoin infrastructure due to unclear classifications, such as whether stablecoins will be considered deposits or securities. This uncertainty restricts banks' deployment capabilities, while crypto exchanges offer competitive yields on stablecoin balances, attracting users. Fabian Dori of Sygnum noted that although this competition hasn't yet caused significant deposit outflows, the situation could change if stablecoins are recognized as "productive digital cash." The regulatory gray area allows crypto firms more flexibility, while banks face constraints, potentially pushing stablecoin activity offshore if yields are capped.