ABA Survey: Most Consumers Support Restrictions on Stablecoin Yields to Reduce Financial Risks

Odaily Planet Daily reports that a recent survey conducted by the American Bankers Association (ABA) shows that most consumers support restricting the earnings on stablecoins if such earnings could pose risks to the banking system.

The survey, conducted by Morning Consult, aimed to understand public opinions on stablecoins, financial technology innovation, and related regulatory policies. The results indicate that about two-thirds of respondents (approximately 3:1) support congressional limits on stablecoin reward mechanisms if such earnings could reduce funds available for community loans and support economic growth.

Additionally, respondents believe at a 6:1 ratio that legislation related to stablecoins should be cautious and avoid measures that could weaken the existing financial system, especially community banks that rely on the banking system to support local economic activities.

This survey was released as the U.S. Congress is discussing legislation on the structure of the crypto market, with whether stablecoins should be allowed to offer yields to holders becoming a core issue in the debate between the banking industry and the crypto sector. The banking industry argues that if stablecoins offer yields, it could attract funds away from traditional bank accounts, impacting bank deposit bases and lending capacity.

ABA President and CEO Rob Nichols stated that the banking industry welcomes competition and innovation, and many banks are interested in entering the digital asset market. However, they oppose allowing new entrants to offer similar financial products without a level playing field in regulation.