According to The Block, American Bankers Association CEO Rob Nichols sent a letter to bank executives Sunday night urging them to contact their senators ahead of Thursday’s Senate Banking Committee vote on landmark cryptocurrency legislation. In the letter, Nichols argued that the current bill does not sufficiently restrict crypto companies from offering “interest-like rewards” on stablecoins, warning that such incentives could drive bank deposits away from traditional institutions and threaten financial stability. The ABA’s push comes after the Senate released compromise language on May 2 that blocks payments functionally equivalent to interest on stablecoin holdings, though it permits activity-based rewards. On May 8, banking trade groups sent their own letter to committee leadership saying the proposed language “falls short” and leaves room for evasion.
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