The American Bankers Association (ABA), which represents the U.S. banking industry, set a ban on interest-bearing stablecoins as the top priority in its 2026 policy agenda. The association warned that if payment stablecoins offer interest or rewards, they could function as substitutes for consumer deposits and cause the deposit base underpinning the financial system to collapse, especially at regional banks.
The ABA's statement comes as stablecoins grow rapidly and some issuers have recently sought to attract users by offering annual interest of about 4 to 5 percent. Bank of America CEO Brian Moynihan has previously mentioned that up to $6 trillion in deposits could move to stablecoins. That has fueled concerns it could weaken the lending capacity of small and mid-sized banks.
The association said interest-bearing stablecoins are effectively performing banking functions without being subject to supervision or regulation. It said that amounted to unfair competition and a threat to financial stability. It said it would step up legislative efforts to introduce related regulation and begin full consultations with regulatory authorities.
Chi-gyu Hwang
delight@d-today.co.kr