In the United States, almost 4,000 small local banks are asking lawmakers not to support a new cryptocurrency law called the Digital Asset Market Clarity Act. These banks, represented by the Independent Community Bankers of America (ICBA), are worried this new law could hurt local economies if passed.

The banks’ main concern is about stablecoins. Stablecoins are special digital currencies that are linked to real money, like the US dollar. If this law passes, the banks think people might move their money from local banks into stablecoins because they might get better rewards or interest.

The ICBA says that community banks could lose up to $1.3 trillion in customer deposits. If this happens, these banks will have less money to lend to small businesses and farms, which could make it harder for people in local areas to get loans.