Overview
- Kraken CEO David Ripley responded on X, calling the American Bankers Association’s position on stablecoin yields “moat building” and defending consumer choice.
- At the ABA Annual Convention, senior vice president Brooke Ybarra argued that paying interest-like returns on stablecoins would harm traditional banks and community lending.
- The debate turns on the GENIUS Act, which bars direct interest on stablecoins but permits exchanges to offer holder “rewards.”
- Industry figures including the Blockchain Association’s Dan Spuller and Coinbase CEO Brian Armstrong urged regulators to allow fair competition for crypto yield products.
- Banks cite stablecoin yields advertised near 5%, above the national savings average of about 0.6% and typical high‑yield accounts near 4%, while some analysts note many stablecoins hold short‑term Treasuries or bank reserves.