American Bankers Association (ABA) Declares War on Stablecoin Yields as Top 2026 Priority
Wall Street's gatekeepers just drew a line in the sand—and they're aiming it straight at DeFi's favorite on-ramp.
The Yield Hunt Is Officially in Their Crosshairs
Forget slow regulatory creep. The ABA's latest move isn't a warning shot; it's a declaration. The traditional banking lobby has placed 'stopping stablecoin yields' at the very top of its 2026 agenda. This isn't about consumer protection pamphlets—it's a coordinated play to defang the core value proposition that's pulling capital from savings accounts into algorithmic protocols.
Why This Time Is Different
Past skirmishes focused on issuance or reserves. This target is smarter. They're going after the engine—the yield. By aiming to sever the link between stable value and passive return, the ABA seeks to make dollar-pegged tokens inert, stripping them of their competitive edge. It's a classic play: if you can't beat the technology, regulate its utility into oblivion. Another masterclass in defending margin by stifling innovation.
The message to crypto natives is clear: the era of regulatory ambiguity is over. The fight for the future of money has a new, sharply defined battlefield—and the old guard just mobilized its heaviest artillery.
Allaire dismisses stablecoin yield concerns as totally absurd
The CEO of Circle, Jeremy Allaire, dismissed concerns that stablecoin yields could affect bank deposits as totally absurd, adding that they will help with stickiness and customer traction. He also noted during the World Economic Forum in Davos that allowing stablecoin yields will do more good than harm.
The Circle CEO further argued that AI agents will have no alternative to stablecoins within three to five years, and will use these tokens for everyday activities on behalf of users. He said stablecoins are the only payment system capable of supporting billions of AI agents transacting at scale.
“They need an economic system. They need a financial system. They need a payment system. There is no other alternative, in my view, other than stablecoins to do that right now.”
–Jeremy Allaire, CEO at Circle
Meanwhile, Changpeng Zhao, the co-founder of Binance, expressed similar views on stage at the WEF on January 22, saying that crypto will be the native currency for AI agents. CZ noted that these AI agents will use stablecoins for everything from paying restaurant bills to buying tickets.
According to CZ, blockchain is the most native technology interface for AI agents because they cannot use bank cards or swipe credit cards.
Anthony Scaramucci, the founder of SkyBridge Capital, also believes that a prohibition on yield-bearing stablecoins puts the U.S. dollar at a competitive disadvantage to China’s central bank-issued yield-bearing digital yuan.
Other critics from the fintech and crypto sectors argue that a ban on stablecoin yields favors banks by limiting the reach of fintech applications, crypto wallets, and stablecoin issuers.
Nichols says new blueprint for growth expands credit access
The president and CEO of ABA, Rob Nichols, stressed that the new blueprint for growth provides important strategic direction as the lobby group works to advance policies that bolster the economy and expand access to credit.
He also noted that the lobby’s blueprint for growth enhances competition in the financial services marketplace, enabling U.S. banks to better meet the needs of their clients and communities nationwide.
Meanwhile, the ABA, together with all 52 state bankers’ associations, called on Congress and the TRUMP administration to embrace the policy priorities proposed for 2026. The lobby group urges Congress to protect local lending by prohibiting the payment of interest, yield, or rewards on stablecoins, regardless of platform.
The ABA also called on Congress to pursue an all-of-government approach to fight financial fraud, working alongside other industry sectors to modernize outdated regulatory thresholds. The bank lobby believes that linking regulatory thresholds to economic growth reduces unnecessary burdens and allows regulators to focus on actual risks.
ABA further urged Congress and regulators to right-size stablecoin regulations. The bank lobby noted that while banks provide access to credit and capital, excessive regulation can restrict availability, limit consumer choice, threaten financial stability, and slow economic growth.
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