U.S. banks are opposing interest-bearing stablecoins due to concerns over potential shifts in deposit structures and profit redistribution. The CLARITY Act, which aims to regulate the cryptocurrency market, has stalled partly due to disagreements over these stablecoins. Banks fear that interest-bearing stablecoins could lead to a significant outflow of deposits, impacting their ability to lend and generate profits. The banking industry argues that stablecoins could divert up to $6 trillion in deposits, limiting banks' lending capabilities. However, stablecoin funds typically re-enter the banking system as reserves, challenging the notion of deposit outflow. The real issue lies in the potential shift from transactional deposits, which are low-cost and profitable for banks, to stablecoins. This shift could increase banks' costs and reduce transaction fee income, as stablecoin issuers might invest reserves in non-transactional deposits, altering the traditional banking profit model.