Stopping the yields of stablecoins is the priority of American bankers in 2026

Source: CritpoTendencia Original Title: Stopping stablecoin yields is the priority for U.S. bankers in 2026 Original Link: The mere possibility that stablecoin issuers might offer yields to users could become a nightmare scenario for traditional banks. In simple terms, this would directly erode the competitiveness of the banking system, creating a risk of financial destabilization.

For this reason, the banking sector has positioned itself as one of the main opponents to the full rollout of stablecoins in the United States.

In fact, the American Bankers Association (ABA) has made fighting stablecoins its top priority for 2026. The lobbying efforts of this organization have succeeded in getting numerous legislators to adopt a critical stance toward regulatory initiatives.

As part of its agenda for 2026, U.S. private bankers also include fighting financial fraud and removing what they consider arbitrary limits on interest rates. However, according to ABA CEO Rob Nichols, no other issue is as urgent as stopping the advancement of yield-bearing stablecoins.

For banks, the interests associated with stablecoins are not a minor detail but an existential matter. From their perspective, preventing this market from evolving into a yield-generating stage is absolutely essential for the stability of the financial system.

In Nichols’ words, the goal is to prevent payment stablecoins from becoming substitutes for deposits, drastically reducing the lending capacity of community banks.

This stance includes an explicit ban on interest, yields, or rewards, regardless of the platform from which they are offered.

The big problem with cryptocurrency yields

According to bankers, allowing stablecoin issuers to offer yields constitutes an unfair competitive advantage. In practice, these platforms would operate like savings accounts but without the regulatory requirements that banks face.

Banking entities are required to pay deposit insurance, maintain strict reserves, and comply with costly regulations. In contrast, crypto sector companies can sidestep these burdens by presenting yields as promotional rewards.

In the view of ABA, this situation creates unfair competition: while banks can only offer very low yields, stablecoins can pay up to 3 percentage points more.

The result would be a gradual migration of savings from banks to the crypto ecosystem, with potentially serious consequences. Although the GENIUS law explicitly prohibits stablecoin issuers from paying interest, regulatory gaps exist that allow this restriction to be bypassed.

For example, exchanges can offer yields that issuers are not authorized to pay directly. In this way, incentives are channeled toward centralized platforms or decentralized finance protocols, increasing the appeal of the crypto sector over the traditional banking system.

This loophole raises alarms among both large and small banks, which are calling on legislators for its immediate closure to prevent a massive deposit outflow.

The consequences of the worst-case scenario

If ABA fails in its attempt and stablecoins manage to offer yields broadly, the consequences could be serious. A massive outflow of deposits from banks to the crypto sector would significantly reduce these entities’ capacity to extend credit.

This would translate into tighter restrictions on mortgage loans, consumer credit, and financing for small and medium-sized enterprises. In the worst case, an abrupt capital migration could lead to the bankruptcy of medium and small banks, especially those with less diversified income streams.

The dilemma for authorities is that banning stablecoin yields does not guarantee the retention of deposits. Users could transfer their capital to foreign stablecoins or even to digital currencies issued by central banks that offer better incentives. Paradoxically, this scenario could further weaken the global dominance of the dollar.