In an official announcement, Coinbase released a report titled “Beyond the Deposit Debate,” rejecting banking industry claims that stablecoins could trigger massive deposit flight and destabilize the financial system. The company disputed Treasury’s projection of $6 trillion in potential outflows, pointing instead to $3.3 trillion parked by banks in Federal Reserve reserves, which generated $176 billion in annual interest. Coinbase argued stablecoin activity is largely international and strengthens the U.S. dollar’s global role. The firm noted stablecoin market growth from $4 billion in 2020 to $285 billion today, with projections of $1 trillion in payment volume by 2030. While banking groups such as the American Bankers Association press Congress to close GENIUS Act loopholes, major institutions like Citigroup and JPMorgan are simultaneously exploring stablecoin issuance and tokenized deposits. Coinbase’s position is supported by research showing no meaningful link between stablecoin adoption and community bank deposit flight over the past five years.