U.S. banks face a potential $500 billion loss in deposits to stablecoins by 2028, according to Standard Chartered's Geoff Kendrick. The stablecoin market, which has grown 40% in the past year to over $300 billion, could see accelerated growth with the Clarity Act's passage. This shift poses a significant threat to traditional banking activities, as stablecoins offer yield-like rewards, such as Coinbase's 3.5% on USDC, which banks argue could exacerbate deposit losses. Regional banks are particularly vulnerable, with institutions like Huntington Bancshares and M&T Bank at high risk due to their reliance on net interest margin income. Despite these concerns, the KBW Regional Banking Index rose nearly 6% in January, indicating limited immediate risk. However, Kendrick warns that the long-term impact of stablecoin adoption on bank deposits and net interest margins is inevitable.