Standard Chartered has issued a warning that U.S. regional banks are encountering substantial risks due to a $500 billion movement towards stablecoins. According to NS3.AI, these digital currencies are increasingly substituting traditional bank deposits. The delay in enacting market structure legislation intensifies the threat to domestic lenders, as it permits digital dollars to continue diminishing bank deposits. This trend highlights the mounting challenges for the banking sector associated with the increasing use of stablecoins.