The American Bankers Association plans to curb stablecoin yield policies by 2026

The American Bankers Association (ABA) announced that it will prioritize "curbing the provision of interest, returns, or rewards for payment based stablecoins" as its top policy priority by 2026, expressing concerns that stablecoins may become a substitute for bank deposits. Bank of America CEO Moynihan has warned that if Congress does not restrict interest bearing stablecoins, it could lead to up to $6 trillion in deposits being transferred from banks, accounting for 30% to 35% of total commercial bank deposits in the United States. Moynihan pointed out that the stable currency structure is similar to the money market mutual fund, and its reserves holding short-term instruments such as US treasury bond bonds instead of being used for bank loans may weaken the bank deposit base.