ABA warns interest-bearing stablecoins could drain regional bank deposits

The American Bankers Association (ABA) has argued that allowing interest payments on stablecoins could lead to deposit outflows from regional banks and a subsequent reduction in local lending, according to Eleanor Terrett, host of Crypto in America. This position serves as a rebuttal to a report on stablecoins from the White House Council of Economic Advisers (CEA). The CEA had previously concluded that prohibiting crypto firms from paying interest to customers holding stablecoins would not have a significant impact on regional banks.