US Banks Want SEC to Weigh Crypto’s Deposit Cost

The Independent Community Bankers of America filed a comment letter on October 20, the final day for public input, urging the SEC not to finalize its Regulation Crypto Assets until it studies the rule’s effect on community-bank deposits and local lending. The proposal, published August 21, would exempt certain crypto-linked investment contracts from Securities Act registration if issuers provide principles-based disclosures, with exemptions capped at $5 million over four years or $75 million in any 12-month period. The rule addresses securities offerings rather than stablecoins, but the ICBA argues easier token issuance could expand stablecoin trading and shift balances away from community banks. The group asked for a supplemental economic analysis conducted with federal banking agencies and for final-rule safeguards such as tighter limits, reporting, regular reviews, suspension authority, and an automatic sunset.