Banks Push to Limit Crypto Rewards on Stablecoins to Protect Deposits
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 10 2026- Increased Regulatory Pressure: The American Bankers Association and Independent Community Bankers of America are lobbying Congress to limit crypto rewards on stablecoins, claiming this could jeopardize traditional bank deposit structures, thereby impacting banks' profits and market competitiveness.
- Consumer Choices Limited: This initiative could restrict consumer access to higher-yield digital dollar options, which, while safeguarding banks' income, may reduce interest options for consumers holding stablecoins, affecting their investment returns.
- Challenges to Stablecoin Regulation: The current lobbying intensifies scrutiny on future stablecoin regulations, posing potential challenges to the evolution of digital financial products and traditional banking revenue streams, which could stifle market innovation.
- Far-reaching Policy Implications: The GENIUS Act already restricts interest on stablecoins, and the ongoing lobbying is viewed as a continuation of this regulatory struggle, potentially further constraining consumer and market innovation in the crypto sector.
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.
