ABA Survey: Majority of Consumers Support Limits on Stablecoin Yields to Mitigate Financial Risks

Odaily News According to a recent survey released by the American Bankers Association (ABA), a majority of consumers support imposing limits on stablecoin yields if they pose potential risks to the banking system.

The survey, conducted by Morning Consult, aimed to understand public opinion on stablecoins, fintech innovation, and related regulatory policies. The results show that if stablecoin yields could potentially reduce the funds banks use for community lending and supporting economic growth, approximately two-thirds of respondents (about a 3:1 ratio) support Congressional action to restrict stablecoin reward mechanisms.

Furthermore, respondents, by a 6:1 ratio, believe that legislation related to stablecoins should be approached cautiously and should not include measures that could weaken the existing financial system, particularly community banks that rely on the banking system to support local economic activities.

This survey was released as the U.S. Congress is debating cryptocurrency market structure legislation, with the core issue of contention between the banking and crypto industries being whether stablecoins should be allowed to provide yields to holders. The banking industry argues that if stablecoins offer yields, they could attract funds away from traditional bank accounts, thereby affecting banks' deposit bases and lending capacity.

ABA President and CEO Rob Nichols stated that while the banking industry welcomes competition and innovation, and many banks are interested in entering the digital asset market, it opposes allowing new entrants to offer bank-like financial products under unequal regulatory rules.