U.S. Banks Push to Limit Stablecoin Yield and Open Banking as Crypto Regulation Nears Turning Point

As U.S. lawmakers work to bring cryptocurrency and traditional finance under a unified regulatory framework, major banks are intensifying efforts to shape how digital dollars generate returns and how financial data is shared. The American Bankers Association’s (ABA) 2026 policy priorities highlight a clear stance: ban yield-bearing payment stablecoins and revise open banking rules to reinforce what banks frame as consumer protection and fair competition.

These proposals arrive at a critical moment for U.S. crypto regulation. Congress is debating a sweeping crypto market structure bill that would clarify how federal regulators oversee digital asset markets. One of the most divisive issues has been whether stablecoins should be allowed to offer yield. That debate recently contributed to the postponement of a Senate Banking Committee markup after Coinbase withdrew its support, underscoring how contentious the topic has become.

Banks argue that yield-bearing stablecoins could function as alternatives to traditional bank deposits, potentially draining liquidity from the banking system and reducing lending capacity. Prominent executives, including Bank of America CEO Brian Moynihan, have warned that unrestricted stablecoin rewards could trigger trillions of dollars in deposit outflows. From the banking industry’s perspective, limiting stablecoin yield is essential to preserving financial stability.

At the same time, the fight over open banking is gaining momentum. Section 1033 of the Consumer Financial Protection Act is designed to give consumers the right to share their financial data freely with third-party services. This data access is a crucial gateway for crypto wallets, stablecoin platforms, and fintech apps seeking to onboard users. Banks are calling for revisions that clarify liability and data access standards, while critics in the fintech and crypto sectors argue such changes could enable banks to impose fees or restrictions that weaken open banking in practice.

Together, these policy positions reveal a broader objective. By tightening rules around stablecoin yield and reshaping open banking implementation, the ABA is pushing to ensure crypto’s integration into the financial system occurs largely within a bank-controlled regulatory perimeter. As lawmakers continue negotiating the market structure bill, the banking industry’s message is clear: digital dollars and financial data flows should remain firmly anchored inside traditional banking oversight.