ABA dey warn say stablecoin yield fit cause people comot dia bank deposits

Di American Bankers Association (ABA) dey push back against White House Council of Economic Advisers (CEA) stablecoin policy report. ABA talk say the main question no be whether stablecoin yield go ban, but wetin go happen if dem allow stablecoins wey dey pay yield. ABA reason say yield fit cause quick deposit “flight,” especially from community banks wey rely on local deposits to give loans. If deposits comot, banks fit need expensive wholesale funding, wey go raise funding costs and make credit tight for households and small businesses. ABA no gree with CEA say na just “harmless reshuffling.” Even if total deposits no fall, ABA warn say reserves fit concentrate for bigger banks, meaning less credit where relationship banking matter pass. Scale matter for ABA estimates: current stablecoin market dey around $300B, with projections of $1–$2T. ABA estimate say some states fit see big lending losses (e.g., $4.4B–$8.7B for Iowa scenarios). Dem also call CEA claim say banning yield give near-term lending gain a “rounding error,” and dem say yield na structural credit-intermediation risk. For crypto traders, na regulatory-and-bank-risk story: stricter limits on stablecoin yield fit get political momentum, while if dem allow am e fit increase financial system worries and make volatility around stablecoin adoption higher.