US Bank Lobby Makes Stablecoin Yield Restrictions a Top 2026 Priority

TheNewsCryptoPublished on 2026-01-23Last updated on 2026-01-23

Abstract

The American Bankers Association (ABA) has identified yield-paying stablecoins as a top policy priority for 2026, warning they could act as deposit substitutes and drain funds from traditional banks, potentially destabilizing the financial system and reducing community bank lending. The ABA is urging Congress to prohibit stablecoins from paying interest, yield, or rewards. This stance is supported by Bank of America CEO Brian Moynihan, who previously warned such stablecoins could pull up to $6 trillion from banks, making loans more scarce and expensive. Conversely, Circle CEO Jeremy Allaire has rejected these claims, highlighting the ongoing debate between the traditional banking and crypto industries.

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The ABA called Congress to take serious action on several concerns, like combating financial fraud, modernizing outdated regulatory frameworks, preventing limits on interest rates that restrict access to credit, and asking for support to revitalize communities and encourage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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Related Questions

QWhat is the American Bankers Association's (ABA) top concern regarding stablecoins in 2026?

AThe ABA's top concern is yield-paying stablecoins, which they believe could take away funds from traditional banks and destabilize the financial system.

QAccording to the ABA, what specific action should be taken against stablecoins?

AThe ABA called for Congress to prohibit stablecoins from paying interest, yield, or rewards to stop them from becoming deposit substitutes that could slash community bank lending.

QWhat potential financial impact did Bank of America's CEO warn about concerning interest-paying stablecoins?

ABank of America CEO Brian Moynihan warned that interest-paying stablecoins could drain up to $6 trillion from US banks, potentially leading to reduced lending and more expensive loans.

QHow did Circle's CEO Jeremy Allaire respond to the claims that stablecoin yields could drain bank funds?

ACircle CEO Jeremy Allaire rejected these claims, pointing to money market funds and broader shifts in finance as context, highlighting the ongoing debate between the banking and crypto industries.

QBesides stablecoins, what other policy areas did the ABA's 'Blueprint for Growth' ask Congress to address?

AThe ABA also called on Congress to combat financial fraud, modernize outdated regulatory frameworks, prevent limits on interest rates that restrict credit access, and support initiatives to revitalize communities and encourage entrepreneurship.

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