Piero Cipollone rattles Coinbase and Circle with stablecoin warning
SummaryPiero Cipollone warned that growing stablecoin use could pull deposits away from traditional banks.Coinbase shares are testing $157 support, with Compass Point maintaining a $140 downside target.Circle remains inside a descending channel as Mizuho forecasts a potential drop to $50. The European Central Bank executive board member raised the concern during a July 17 speech at the Federation of Cooperative Credit Banks in Rome, where he linked increased stablecoin use with a possible decline in customer deposits. According to Cipollone, consumers may become less willing to keep money in conventional bank accounts if stablecoins gain wider use. He argued that the European Union should speed up the digital euro to protect the role banks play in the financial system and limit reliance on privately issued tokens. His comments have added a European voice to concerns already raised by US banking groups during negotiations over the CLARITY Act. In a letter to the Senate, the groups called for changes to Section 404 that would stop stablecoin companies from offering rewards or yield through affiliated firms. Banking groups warned that interest-bearing stablecoins could pull deposits from community lenders and weaken their ability to provide credit. Circle, which issues the USDC stablecoin, has become especially exposed to
