A US bank lobby group has made stablecoin yield restrictions a top 2026 priority, calling on regulators to limit how much interest or earnings can be paid on stablecoin deposits. The move reflects concern among traditional banks about competition from digital asset products.
Lobby pushes for stablecoin yield limits
The American Bankers Association (ABA), representing major US banks, said stablecoin yield restrictions should be part of financial regulatory reform this year. The group is urging lawmakers and regulators to consider caps or limits on the interest rates or yields that stablecoin issuers can offer to customers or investors.
Banks view stablecoin yields as competitive pressure
Bank lobbyists argue that high yields offered on stablecoin and crypto deposit products draw funds away from traditional saving and deposit accounts. By limiting stablecoin yields, they believe regulators could reduce competitive pressure and reduce risk to the broader financial system.
Policy push in Washington
The ABA’s priorities include engaging with the US Treasury, the Securities and Exchange Commission, and Congress to advance rules that govern stablecoin activities. The group wants clear regulatory authority over stablecoin issuers and yield practices to ensure they align with broader banking laws.
Concerns about risks
Supporters of yield limits say unrestricted stablecoin earnings could pose risks to retail investors and financial stability. Echoing themes from past crypto market stress events, they argue that easy access to high returns might encourage risk-taking without adequate protections.
Industry response
Crypto industry participants and advocates generally oppose yield caps, saying they could hinder innovation and push users to offshore platforms. They contend that transparent disclosures and appropriate oversight are preferable to outright yield limits.
Regulatory context
Stablecoins — digital assets pegged to fiat currency values — have drawn increased scrutiny from US regulators in recent years. Lawmakers have debated how to classify and oversee stablecoin issuers, with some proposals aiming to bring them more directly under banking or securities rules.
Conclusion
A US bank lobby group has made stablecoin yield restrictions a top priority for 2026, seeking regulatory changes that would limit how much return can be offered on stablecoin holdings as part of broader financial oversight reforms.
