The European Central Bank warns of the threat posed by stablecoins, stating that a bank run could impact the $25 trillion U.S. Treasury market.

According to ChainCatcher news, The Defiant reports that the latest report from the European Central Bank (ECB) points out that stablecoins pose risks to financial stability, as a loss of confidence by investors in their redemption ability could lead to a decoupling. The report states that Tether and Circle, as one of the largest holders of U.S. Treasury bonds, could trigger a reserve asset sell-off in the event of a bank run, impacting the $25 trillion U.S. Treasury market. The ECB criticizes stablecoins for their inherent vulnerabilities and the risks to financial stability posed by their links to traditional finance, noting that yield-bearing stablecoins could siphon off bank deposits. The MiCA regulation has prohibited yield-bearing stablecoins, and the U.S. banking sector has also called for similar bans. According to DeFiLlama data, the market value of stablecoins has surpassed $300 billion, with USDT and USDC accounting for over 85%. Despite pressure from the banking industry, the United States continues to embrace the stablecoin industry under the push of the Trump administration. The GENIUS Act passed in July aims to reduce risks associated with DeFi stablecoins and is expected to put pressure on yield-bearing stablecoins.