The battle between stablecoins and traditional banks heats up, with the American Bankers Association listing "prohibiting stablecoin yields" as a top priority.

BlockBeats News, January 23 — The American Bankers Association (ABA) announced that by 2026, it will prioritize “restrictions on interest/return/reward payments on payment-type stablecoins,” showing concern that stablecoins could become a substitute for bank deposits.

JPMorgan Chase CEO Jamie Dimon warned earlier this month that if the U.S. Congress does not restrict interest-earning stablecoins, up to $6 trillion in deposits could shift away from banks, accounting for approximately 30% to 35% of total deposits in U.S. commercial banks. Dimon stated that stablecoins are structurally similar to money market mutual funds, with reserves held in short-term instruments (such as U.S. Treasuries), rather than being used for bank loans like traditional banks. In this model, funds operate outside the traditional banking system, leading to a shrinking deposit base that supports loans to households and businesses.