The American Bankers Association is ramping up its lobbying campaign to curb the growth of stablecoins, arguing that digital dollar tokens pose a direct threat to bank deposits and local credit, according to a strategic plan.

In its "2026 Blueprint for Growth", the ABA called on Congress and federal regulators to prevent "payment stablecoins" from functioning as substitutes for deposits, explicitly urging lawmakers to prohibit interest, yield, or rewards on stablecoins, regardless of the issuer or platform.

The proposal marks one of the clearest efforts to date by the American banking lobby to slow the expansion of stablecoins, as they gain traction in payments, trading, and cross-border settlement.

Banks present stablecoins as a credit risk

The ABA claims that allowing stablecoins to offer a yield would siphon deposits from traditional banks, particularly community banks, reducing credit availability for households and small businesses.

The group warned that yield-bearing stablecoins could undermine the funding base on which banks rely to support local economies.

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"Preventing payment stablecoins from becoming deposit substitutes," the association stated in its blueprint, calling yield-bearing tokens a threat to the credit of community banks and to financial stability.

The policy document, developed by the ABA's Government Relations Council and approved by its board of directors, will guide the group's action with Congress and the Trump administration throughout the year 2026.

A regulatory line drawn against crypto finance

The section dedicated to stablecoins aligns with broader ABA priorities aimed at enhancing oversight of non-bank financial activities.

The association urged policymakers to restrict non-bank actors' access to the Federal Reserve's infrastructure, arguing that fintech and crypto companies should not receive banking-like privileges without being subject to the same safety and soundness rules as regulated lenders.

The blueprint also opposes what the ABA describes as regulatory distortions favoring non-banks, presenting stablecoins as part of a broader competitive imbalance between traditional banks and purely crypto businesses.

Coinbase founder Brian Armstrong recently withdrew his support for the current form of the American Senate bill on crypto market structure, a gesture that reveals growing fractures between lawmakers and the crypto-asset industry regarding how digital assets should be regulated.

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