The American Bankers Association just declared war on stablecoin yields fearing up to $6 trillion could flee traditional banks for interest-paying crypto, they're lobbying hard to kill yield-bearing stablecoins despite the GENIUS Act already banning issuer-paid interest, claiming a third-party loophole threatens community bank lending.
But crypto execs are pushing back: Circle's Jeremy Allaire calls bank run fears "totally absurd," arguing yields boost customer retention, while SkyBridge's Anthony Scaramucci warns that banning them hands China's yield-bearing digital yuan a competitive edge over the dollar.
The real fight? Banks protecting deposits vs. crypto proving stablecoins can coexist or even strengthen the financial system. With lawmakers caught in the middle, 2026's shaping up to be the year this gets settled.
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