US Bank Lobby Makes Stablecoin Yield Restrictions a Top 2026 Priority

• The American Bankers Association says that stablecoins will be a major concern for traditional banks in 2026.
• The Bank group warns that stablecoins could divert funds from banks and destabilize the financial system.

The American Bankers Association (ABA), a leading financial body in the United States, says that yield-paying stablecoins are a major concern in 2026. As the group says, stablecoins giving interest could take away funds from traditional banks and destabilize the financial system, prompting a debate between banks and the crypto industry.

According to the ABA Banking Journal report, “Stop payment stablecoins from becoming deposit substitutes that slash community bank lending by prohibiting paying interest, yield, or rewards regardless of the platform,” was mentioned as one of the top priorities of concern. 

ABA President and CEO Rob Nichols said, “Our new Blueprint for Growth is guided by input from banks of all sizes and business models, providing important strategic direction as we work to advance policies that bolster the economy, expand access to credit, and enhance competition in the financial services marketplace,” noted in the ABA report.

The ABA called Congress to take serious action on several concerns, like combating financial fraud, modernizing outdated regulatory frameworks, preventing limits on interest rates that restrict access to credit, and asking for support to revitalize communities and encourage entrepreneurship. Out of all concerns, the crypto-related stablecoin payment is being placed as the first concern. 

Banks and Crypto Clash Over Stablecoin

In addition to this, earlier this month, according to Bank of America CEO Brian Moynihan, interest-paying stablecoins could drain up to $6 trillion from US banks. As he warned, if a large amount of money moves from banks to these stablecoins, banks may lend less and make loans more expensive, as shared by the crypto investor on the X platform. 
On the contrary note, Circle CEO Jeremy Allaire at the World Economic Forum rejected claims that stablecoin yields could cause bank funds to drain, pointing to money market funds and broader shifts in finance. With that, it highlights the growing arguments between banks and the crypto industry.

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