Alabama State Senator Keith Kelley has raised concerns about the potential negative impact of the federal stablecoin bill, the GENIUS Act, on small community banks. Kelley highlighted a loophole in the legislation that could incentivize withdrawals from local banks, threatening their ability to provide loans to individuals and small businesses. This could particularly affect rural farming communities in Alabama, where local banks are crucial for seasonal cash flow. The GENIUS Act, signed into law by President Trump on July 18, is yet to be fully implemented as the US Treasury and Federal Reserve work on finalizing regulations. Critics, including Kelley, argue that the bill allows cryptocurrency platforms to offer financial rewards, potentially leading to significant deposit outflows from traditional banks. Banking groups have echoed these concerns, warning of a possible $6.6 trillion in deposit outflows, which could disrupt credit flow to communities reliant on local banks.