U.S. Banks Lobby Congress to Restrict Stablecoin Rewards, Safeguarding $360 Billion Revenue Stream
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 11 2026- Revenue Protection: The American Bankers Association, along with 52 state banking associations, has urged Congress to tighten restrictions on stablecoin rewards to safeguard over $360 billion in annual revenue streams primarily derived from payments and deposits, warning that failure to do so could impose a hidden tax of approximately $1,400 per year on households.
- Fee Sources: Banks generate substantial income from routine consumer activities, with around $187 billion coming from interchange fees paid by merchants for credit card transactions, where although some costs are returned to customers as rewards, merchants typically pass these costs onto consumers through higher prices.
- Regulatory Challenge: Crypto platforms currently offer rewards through affiliate or loyalty programs, and banks are seeking Congress to clarify in upcoming market-structure legislation that these rewards should be explicitly classified as prohibited yields to prevent further competition with regulated financial institutions.
- Industry Opposition: Crypto firms like Coinbase strongly oppose the move, arguing that banning rewards would entrench existing banking margins rather than protect consumers, and they warn that limiting innovation in the U.S. could drive capital and development to jurisdictions where digital currencies can offer yields.
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.
