American Bankers Association Seeks to Block Interest-Bearing Stablecoins

Odaily News According to reports, the American Bankers Association has listed "preventing stablecoins from generating yield" as its top lobbying goal for 2026. The association believes that interest-bearing stablecoins will become an alternative to bank deposits, potentially leading to the outflow of trillions of dollars from the traditional banking system. This could weaken banks' lending capacity and jeopardize their core role in the financial system.

In response, Circle CEO Jeremy Allaire refuted this at the Davos Forum, calling the concern that stablecoin yields would affect bank deposits "completely absurd." He pointed out that yields can enhance user engagement and that stablecoins will become a necessary payment system for AI agents to conduct large-scale transactions in the future. Opponents argue that this move aims to protect bank interests, restricts fintech innovation, and puts the US dollar at a disadvantage in its competition with China's digital yuan. (Cryptopolitan)