The competition between stablecoins and traditional banks has intensified, and the American Bankers Association has listed "prohibiting stablecoin earnings" as a top priority

The American Bankers Association (ABA) has stated that it will prioritize "curbing interest/yield/reward on payment stablecoins" as a key policy issue in 2026, reflecting concerns about stablecoins becoming alternatives to bank deposits.

Bank of America CEO Moynihan warned earlier this month that if the U.S. Congress does not limit interest-bearing stablecoins, up to $6 trillion in deposits could shift away from banks, a figure that represents about 30% to 35% of total deposits in U.S. commercial banks.

Moynihan noted that the structure of stablecoins is similar to that of money market mutual funds, which hold reserves in short-term instruments (such as U.S. Treasury securities) rather than being used for bank loans like traditional banks. In this model, funds are detached from the traditional banking system, leading to a shrinking deposit base that banks rely on to support loans to households and businesses.