US banks are panicking over yield-bearing stablecoins and are calling for restrictions

Worried bankers. In July 2025, President Trump signed the GENIUS Act, which regulates stablecoins in the United States . With the prospect of growth in this crypto sector (now free from the regulatory ambiguity that previously prevailed), traditional banks are panicking . So much so that the  American Bankers Association ( ABA ) sent a letter to US senators, urging them to impose stricter restrictions on stablecoins, especially those with built-in yields ( yield-bearing stablecoins ), which they believe threaten the bankers' business model.