The American Bankers Association is intensifying its lobbying campaign to curb the growth of stablecoins, arguing that digital dollar tokens pose a direct threat to bank deposits and local lending, according to a policy blueprint.
In its 2026 Blueprint for Growth, the ABA called on Congress and federal regulators to prevent so-called “payment stablecoins” from functioning as deposit substitutes, explicitly urging lawmakers to ban interest, yield, or rewards on stablecoins regardless of the issuing platform.
The proposal marks one of the clearest efforts yet by the U.S. banking lobby to slow the expansion of stablecoins as they gain traction in payments, trading, and cross-border settlement.
Banks Frame Stablecoins As Risk To Lending
The ABA said allowing stablecoins to offer yield would drain deposits from traditional banks, particularly community lenders, reducing credit availability for households and small businesses.
The group warned that stablecoins paying returns could undermine the funding base banks rely on to support local economies.
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“Stop payment stablecoins from becoming deposit substitutes,” the association said in the blueprint, calling yield-bearing tokens a threat to community bank lending and financial stability.
The policy document, developed by the ABA’s Government Relations Council and approved by its board, will guide the group’s engagement with Congress and the Trump administration throughout 2026.
Regulatory Line Drawn Against Crypto Finance
The stablecoin language sits alongside broader ABA priorities aimed at tightening oversight of non-bank financial activity.
The association urged policymakers to restrict non-bank access to Federal Reserve infrastructure, arguing that fintech and crypto firms should not benefit from banking-like privileges without being subject to the same safety and soundness rules as regulated lenders.
The blueprint also pushes back against what the ABA described as regulatory distortions that favor non-banks, framing stablecoins as part of a wider competitive imbalance between traditional banks and crypto-native firms.
Coinbase founder Brian Armstrong recently pulled support from the U.S. Senate’s crypto market structure bill as currently drafted, a move revealing growing fractures between lawmakers and the cryptocurrency industry over how digital assets should be regulated.
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