A recent study from Cornell University reveals that stablecoins are encouraging banks to innovate rather than causing significant deposit outflows. The research indicates that stablecoins, alongside Bitcoin's growing role as an inflation hedge, are acting as competitive forces in the financial sector. The GENIUS Act, which is part of efforts to counter the financing of terrorism, supports the integration of stablecoins into the U.S. financial system. The study finds that bank deposits remain stable, with stablecoins serving as a complementary tool rather than a threat to traditional banking.