ABA survey finds support for banning stablecoins that threaten banks

A significant number of respondents in an American Bankers Association (ABA) survey believe stablecoin legislation should be handled with extreme caution if it threatens to undermine the traditional financial system, CoinDesk reported. Respondents supported a congressional ban on stablecoins by a three-to-one margin if the payment of rewards on such assets risks reducing the volume of bank deposits. Notably, one-sixth of those surveyed argued that community banks, which support local economic activity, must be protected and that no measures should be taken that could weaken them.