Part 1
The American Bankers Association (ABA) has elevated the prohibition of interest, yield, or rewards on payment stablecoins to its top policy priority for 2026, reflecting growing tensions between the traditional banking sector and the crypto industry as U.S. lawmakers move toward passing comprehensive crypto market structure legislation.
According to the ABA, its primary concern is that yield-bearing stablecoins could function as substitutes for bank deposits, thereby weakening the deposit base of especially community banks and reducing their capacity to lend. In a policy statement released this week, the association said it aims to “stop payment stablecoins from becoming deposit substitutes that slash community bank lending by prohibiting paying interest, yield or rewards regardless of the platform.”
Stablecoin oversight ranked first among five major priorities identified by the ABA for 2026. Other priorities include combating financial fraud, opposing arbitrary interest rate caps, and addressing issues related to indexing and mission-driven banks. ABA President and CEO Rob Nichols stated that these priorities were shaped by extensive feedback from banks and businesses of varying sizes and operational models across the United Sta$ETH
