Nate Franzen, head of agricultural finance at First Dakota National Bank, warned that stablecoin rewards could draw as much as $4.7 billion from the roughly $47 billion in deposits held by South Dakota regional banks. Citing an estimate from the American Bankers Association, he said the shift could reduce those banks’ lending capacity by up to $3.7 billion. Franzen argues that the CLARITY Act, a proposed U.S. Senate framework for stablecoins, should impose strict limits on rewards and interest-like payments. Stablecoins are digital assets pegged to traditional currencies such as the U.S. dollar. Unlike bank deposits, which are insured by the FDIC (U.S. deposit insurer) up to $250,000, stablecoins do not currently have comparable federal insurance guarantees. The debate reflects broader concerns that digital-asset growth could weaken regional banks’ role in financing rural communities, even as policymakers consider stablecoins for payments modernization and financial inclusion.