Digital currencies are challenging banks for the throne of money.

العملات الرقمية قوة مالية صاعدة تعيد تشكيل موازين النفوذ داخل النظام المصرفي الأميركي (غيتي)

December 18, 2025
libyawire
Economy
0

Digital currencies are no longer a marginal sector that can be ignored or ridiculed. According to an analysis, they have transformed into a financial and political force that now threatens the historical position of banks within the US financial system, and even within the Republican Party itself.

The report begins by recalling the saying often misattributed to Gandhi: “First they ignore you, then they laugh at you, then they fight you, then you win.”

This is a phrase Gandhi never actually said, but it has become a popular slogan in the digital currency industry, which sees itself as having genuinely moved from the stage of marginalization to the stage of influence.

Regulatory Breakthroughs and Political Surge

The analysis indicates that 2025 was an exceptional year for both banks and the digital asset industry. Digital currencies benefited from the legal clarity provided by the “GENIUS Act” passed in July, which established a clear regulatory framework for stablecoins.

In contrast, bank stocks have risen by about 35% since the presidential election victory, driven by expectations of a more friendly regulatory environment.

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The analysis notes that very few bankers, even those who politically oppose the current administration, prefer the regulatory approach that prevailed during the previous administration, reflecting the extent of the frustration caused by the previous regulatory strictness.

However, this apparent improvement hides rising tension. The analysis argues that “the threat coming from digital currencies is now much greater than bankers believed,” and that the traditional status of banks as the “financial aristocracy” is now less secure with the rise of new players from the world of digital currencies.

Stablecoins: A Loophole That Worries Banks

Stablecoins are the focus of the most urgent concern for banks. While the GENIUS Act prohibits these currencies from paying direct yields to their holders in an attempt to prevent the draining of bank deposits, the analysis points to a “clear workaround” for this restriction.

Companies like Circle, the issuer of the USDC stablecoin, can share their revenue with trading platforms like Coinbase, which in turn pay “rewards” to users.

Although these payments are not officially called yields, banks see them as a direct undermining of the legislation’s primary purpose and are pushing to close this loophole.

The concern is not limited to the issue of yields. In October, a statement by a prominent political figure caused alarm in banking circles by hinting at the possibility of granting more companies direct access to the central bank’s payment systems.

Although the statement was later walked back, with assurances that such access would remain conditional on obtaining a banking license, the hint was enough to raise concerns.

Breaching the Banking System

The analysis points out that the most important shift occurred on December 12, when a US banking regulator approved granting “national trust bank” licenses to five digital finance companies, including Circle and Ripple.

While these licenses do not permit accepting deposits or lending, they allow these companies to provide nationwide custody services instead of relying on fragmented state-level licenses.