Bank lobby sets sights on stablecoin returns and open banking in new policy drive

U.S. Banks Push for Stricter Crypto and Data Regulations

As legislators aim to bring digital assets and traditional finance under a unified regulatory framework, major U.S. banks are urging Congress to set tighter boundaries on how digital dollars can generate returns and how financial information is shared.

The American Bankers Association (ABA) has outlined its top policy goals for 2026, advocating for a prohibition on interest-bearing payment stablecoins and revisions to open banking regulations. The ABA argues these changes are necessary to protect consumers and maintain fair competition.

However, many in the cryptocurrency and fintech sectors argue that these proposals would give banks an unfair advantage. They contend that restricting how stablecoin issuers, crypto wallets, and fintech platforms interact with users could stifle competition at a crucial time for digital asset regulation in the U.S.

These debates are unfolding as the Senate faces challenges in advancing comprehensive legislation that would clarify federal oversight of digital asset markets. One of the most divisive topics is whether stablecoins should be allowed to offer yields, a sticking point that recently led to the postponement of a key Senate Banking Committee session after Coinbase withdrew its backing.

Regarding stablecoins, the ABA and leading bank executives have cautioned that allowing stablecoins to pay interest could divert deposits away from banks, potentially shrinking the funds available for lending. Leaders such as Bank of America CEO Brian Moynihan have warned that trillions of dollars could exit the banking system if stablecoin incentives are not limited by law.

The Complexities of Open Banking

The debate over open banking is equally significant. Section 1033 is intended to empower consumers to share their financial data with third-party providers, a key gateway for crypto wallets, stablecoin platforms, and exchanges.

Banks are seeking amendments to clarify who is responsible for data access and to establish clear standards, while fintech and crypto advocates argue that such changes could allow banks to introduce fees or restrictions that would undermine the spirit of open banking.

For the ABA, both the stablecoin and open banking debates serve a common purpose: to ensure that the integration of digital assets into the financial system occurs according to standards set by the banking industry.

As lawmakers continue to negotiate the details of the market structure bill, the ABA’s recommendations make it clear that banks want digital currencies and data sharing to remain firmly within the boundaries of regulated banking.