TechFlow news — On January 23, according to Cointelegraph, the American Bankers Association (ABA) has listed curbing interest-bearing stablecoins as a top priority for 2026, part of its ongoing debate with U.S. lawmakers, arguing that such measures would harm banks' competitiveness.
The ABA stated on Tuesday that one of its key priorities this year is "preventing payment stablecoins from becoming substitutes for deposits by prohibiting the payment of interest, yield, or rewards, thereby avoiding reduced lending capacity at community banks." Earlier this month, Bank of America CEO Brian Moynihan said as much as $6 trillion could shift from banks to interest-bearing stablecoins.
Circle CEO Jeremy Allaire dismissed concerns that stablecoin yields could trigger bank runs as "utterly absurd."
