David Ripley argues consumers should have freedom to earn yield outside the traditional banking system as tensions grow between crypto and finance leaders
Kraken co-CEO David Ripley has pushed back against the American Bankers Association (ABA) after one of its senior executives criticized stablecoin yields as a potential “detriment” to banks’ ability to serve their communities.
During the ABA’s annual convention, senior vice president Brooke Ybarra argued that allowing crypto platforms like Kraken or Coinbase to offer yield on payment stablecoins would contradict their purpose as transactional tools rather than investment products.
But Ripley dismissed that logic, saying the concern is misplaced. “A detriment to who? Consumers should have the freedom to choose where they hold value and the most efficient way to send that value,” he said.
He further added that traditional banks have long profited from customer deposits without sharing those benefits, noting, “We are building toward something else — a system where services once reserved for the wealthy are accessible to everyone.”
Industry experts backed Ripley’s comments, arguing the backlash highlights growing competition between traditional finance and crypto platforms. Dan Spuller, head of industry affairs at the Blockchain Association, said, “Big banks are ruthlessly targeting our friends at Coinbase and Kraken to protect their turf.”
Stablecoin yields currently range from 4% to 5% on leading exchanges, significantly higher than the U.S. national average savings rate of 0.6%, according to Bankrate data. That discrepancy, Ripley and others argue, underscores why more consumers are seeking alternatives outside the banking system.
“Bring on the competition,” said Solana developer Voss, adding that fair market rivalry will only strengthen the financial ecosystem.
The debate comes just months after the U.S. government passed the Genius Act, establishing a regulatory framework for stablecoins and signaling their growing mainstream acceptance.
Some analysts suggest stablecoins may even be safer than traditional bank deposits, as they’re often backed by U.S. Treasury bills or reserves at systemically important banks. “These assets can be more secure than commercial deposits,” said Diogo Monica of Haun Ventures.
As regulatory clarity increases, the clash between crypto innovators and traditional financial institutions underscores a larger shift: a battle over who controls the future of digital money and consumer financial freedom.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.