U.S. bank lobby group, the American Bankers Association (ABA), has set stopping stablecoin yields as a top priority for 2026. There is an ongoing debate between the ABA and U.S. lawmakers that stablecoin yields will negatively impact the competitiveness of the U.S. banking industry. According to the ABA, stopping stablecoins from becoming deposit substitutes that slash community bank lending is one of several 2026 priorities. The dispute centers on whether yield-bearing stablecoins will pull deposits away from traditional banks, a claim the ABA emphasizes will not only weaken lending but also erode banks’ role in the U.S. financial system. Brian Moynihan, CEO of the Bank of America, believes that up to $6 trillion could move out of banks into yield-bearing stablecoins. Meanwhile, stablecoin oversight also topped a list of five priorities set for this year, including fighting financial fraud, focusing on indexing and mission-driven banks, and stopping arbitrary interest rate caps. Rob Nichols, the ABA’s president and CEO, said the priorities are guided by input from several businesses and banks of different sizes and models. Allaire dismisses stablecoin yield concerns as totally absurd The CEO of Circle, Jeremy Allaire, dismissed concerns that stablecoin yields could affect bank deposits as totally absurd, adding that they will help with stickiness and customer traction. He also noted during the World Economic Forum in Davos that allowing stablecoin yields will do more good than harm. The Circle CEO further argued that AI agents will have no alternative to stablecoins within three to five years, and will use these tokens for everyday activities on behalf of users. He said stablecoins are the only payment system capable of supporting billions of AI agents transacting at scale. “They need an economic system. They need a financial system. They need a payment system. There is no other alternative, in my view, other than stablecoins to do that right now.” – Jeremy Allaire , CEO at Circle Meanwhile, Changpeng Zhao, the co-founder of Binance, expressed similar views on stage at the WEF on January 22, saying that crypto will be the native currency for AI agents. CZ noted that these AI agents will use stablecoins for everything from paying restaurant bills to buying tickets. According to CZ, blockchain is the most native technology interface for AI agents because they cannot use bank cards or swipe credit cards. Anthony Scaramucci, the founder of SkyBridge Capital, also believes that a prohibition on yield-bearing stablecoins puts the U.S. dollar at a competitive disadvantage to China’s central bank-issued yield-bearing digital yuan. Other critics from the fintech and crypto sectors argue that a ban on stablecoin yields favors banks by limiting the reach of fintech applications, crypto wallets, and stablecoin issuers. Nichols says new blueprint for growth expands credit access The president and CEO of ABA, Rob Nichols, stressed that the new blueprint for growth provides important strategic direction as the lobby group works to advance policies that bolster the economy and expand access to credit. He also noted that the lobby’s blueprint for growth enhances competition in the financial services marketplace, enabling U.S. banks to better meet the needs of their clients and communities nationwide. Meanwhile, the ABA, together with all 52 state bankers’ associations, called on Congress and the Trump administration to embrace the policy priorities proposed for 2026. The lobby group urges Congress to protect local lending by prohibiting the payment of interest, yield, or rewards on stablecoins, regardless of platform. The ABA also called on Congress to pursue an all-of-government approach to fight financial fraud, working alongside other industry sectors to modernize outdated regulatory thresholds. The bank lobby believes that linking regulatory thresholds to economic growth reduces unnecessary burdens and allows regulators to focus on actual risks. ABA further urged Congress and regulators to right-size stablecoin regulations. The bank lobby noted that while banks provide access to credit and capital, excessive regulation can restrict availability, limit consumer choice, threaten financial stability, and slow economic growth. Join a premium crypto trading community free for 30 days - normally $100/mo.
