Bank of America pressures regulators: Ban stablecoin interest payments to protect the traditional financial system

Source: Criptonoticias Original Title: US Banks: Prevent Stablecoins from Replacing Deposits Original Link: https://www.criptonoticias.com/comunidad/adopcion/bancos-estados-unidos-stablecoins-depositos/ The American Bankers Association (ABA) has increased pressure on the US Congress and government to curb the expansion of stablecoins.

In its “2026 Growth Plan” release, the US banking organization identified preventing stablecoins from acting as a substitute for traditional bank deposits as a strategic priority.

The organization claims that without strict restrictions on the yields offered by these assets, the local financial system will face capital outflows. They argue this would limit the ability to lend to households and small businesses.

ABA President and CEO Rob Nichols stated that the plan is guided by the vision of banks of all sizes, aiming to <<promote policies that strengthen the economy, expand credit access, and enhance competition in the financial services market>>.

Among the 52 state banking associations supporting this initiative, there is a clear consensus: the issuance of digital payment currencies should not threaten the stability of community banking systems.

One of the key points of the ABA proposal is to explicitly prohibit stablecoins from paying interest, yields, or rewards, regardless of the platform used.

Bankers argue that these digital currencies are effectively operating as a <>. JPMorgan Chase CFO Jeremy Barnum described some of these digital currencies as <>.

According to Barnum, the problem is that these assets absorb public funds but are not subject to the same regulations and solvency rules that banks have followed for centuries.

Heightened Regulatory Tensions in the US Over Stablecoins

This stance from bankers comes at a time of heightened regulatory tension. Despite the passage of the GENIUS Act in 2025, which prohibits direct interest payments on stablecoins, the ABA accuses the industry of having found <>—namely, providing indirect yields through partners and trading platforms.

In a letter sent to the Senate on January 5, 2026, signed by over 200 banking leaders, there is a warning that Bitcoin and digital asset companies are <> existing regulations.

This concern is not only conceptual but also quantitative. US Bank Group CEO Brian Moynihan pointed out that capital outflows into these digital tools could reach $6 trillion.

Moynihan warned that if bank deposits migrate en masse to stablecoins, the system will lose its lending capacity.

<<If you remove deposits, either they cannot lend or they must obtain more expensive wholesale financing, which will increase loan costs>>, the executive emphasized.

As Congress prepares to discuss stablecoin yields between January and February this year, traditional banks are seeking to address what they see as <>.

The ABA insists that, to maintain financial stability, authorities must ensure that digital assets are not granted <>, which they argue are not measured by the same standards as traditional financial institutions.