The US banking industry is intensifying its push against yield-bearing stablecoins as lawmakers prepare to advance new crypto market structure legislation. Heading into 2026, bank representatives argue that allowing stablecoins to pay interest could disrupt traditional deposit models and weaken community bank lending across the country.
Stablecoin Regulation and Banking Concerns
Industry groups representing banks have placed stablecoin oversight at the top of their policy agenda, calling for strict rules that prevent stablecoins from offering interest, yield, or reward programs through any platform. Their central concern is that yield-paying stablecoins could act as deposit substitutes, drawing funds away from banks that rely on deposits to finance loans for households and small businesses.
Banking executives warn the impact could be substantial. Some estimate that as much as $6 trillion in deposits could migrate out of the traditional banking system if interest-paying stablecoins gain traction. While existing legislation already restricts issuers from directly paying yield, banks argue that regulatory loopholes may still allow indirect rewards through third-party structures.
On the other side, crypto executives maintain that stablecoin yields enhance user adoption without threatening financial stability. They argue that banning yields could reduce the global competitiveness of the US dollar, especially as other countries experiment with digital currencies that offer returns.
As Congress weighs these competing views, stablecoin yield rules are shaping up to be a defining issue for the future of digital finance in the United States.
Disclaimer
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