Core Viewpoint - The ongoing debate in the US Senate regarding stablecoins is largely based on misconceptions rather than factual evidence, which could hinder the progress of meaningful crypto legislation [1][2]. Group 1: Misconceptions about Stablecoins - Misconception 1: Stablecoins shrink bank deposits. Contrary to this belief, stablecoin adoption does not necessarily lead to a decrease in US bank deposits. In fact, foreign demand for stablecoins and the Treasury-backed reserves held by issuers can increase domestic bank deposits [3]. - Stablecoins increase demand for dollars globally, with reward-bearing stablecoins enhancing this effect [4]. Group 2: Impact on Bank Credit Supply - Misconception 2: Stablecoins threaten bank credit supply. Critics suggest that deposits moving into stablecoins could reduce lending; however, this conflates profitability with credit supply, which is misleading [5].