American Bankers Association Urges Ban on Stablecoin Yields to Protect Deposits
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: 5d ago- Stablecoin Risk Warning: The American Bankers Association (ABA) warns in its 2026 Blueprint for Growth that stablecoins as payment tools could threaten traditional bank deposits, particularly community banks' lending capacity, urging Congress to ban interest or rewards on stablecoins.
- Deposit Drain Concerns: The ABA cautions that allowing stablecoins to offer yields would drain deposits from traditional banks, thereby reducing credit availability for households and small businesses, which could undermine the funding base for local economies.
- Strengthened Regulatory Calls: The policy document emphasizes the ABA's call to restrict non-bank financial activities, arguing that fintech and crypto firms should not enjoy banking-like privileges without adhering to the same safety and soundness regulations to maintain financial stability.
- Growing Industry Divisions: Coinbase founder Brian Armstrong's withdrawal of support for the U.S. Senate's crypto market structure bill reveals increasing fractures between lawmakers and the cryptocurrency industry regarding the regulation of digital assets.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
