The American Bankers Association prioritizes stablecoin rewards in its 2026 agenda, aiming to curb digital-dollar incentives that could drain deposit bases and lending capacity. The ABA Blueprint for Growth urges Congress to restrict stablecoin yield to prevent deposit substitution. Senate negotiations on digital asset legislation stall over reward provisions.

Banking executives, including Bank of America CEO Brian Moynihan and JPMorgan CFO Jeremy Barnum, caution against interest-bearing stablecoins creating a parallel banking system. Community Bankers Council warns of deposit outflows affecting credit availability for small businesses and individuals. Senator Tim Scott’s draft bill restricts paying interest for holding stablecoins.

A coalition of 125 crypto and fintech organizations rejects expanded yield restrictions, arguing banking efforts are protectionist rather than consumer-focused. Circle CEO dismisses banking concerns as baseless, drawing parallels to historical opposition to money market funds. Global stablecoin transaction volumes hit $33 trillion in 2025, with projections to reach $56 trillion by 2030.

The Senate Agricultural Committee plans to markup competing legislation regarding payment stablecoins, diverging from the Banking Committee’s approach. Coinbase CEO objects to provisions eliminating stablecoin rewards in Scott’s draft bill. Divisions persist as global stablecoin transactions surge, raising regulatory concerns and industry pushback against yield restrictions.

Read more at Yahoo Finance: Banks Make Killing Stablecoin Yields Their Top 2026 Priority