In a Sunday letter to bank CEOs, ABA President and CEO Rob Nichols urged bank leaders across the country to join an industry-wide effort to convince senators to improve digital asset market structure legislation before a key committee vote this week.
Ahead of the scheduled Thursday vote by the Senate Banking Committee, Nichols called on bankers to contact their senators using ABA’s grassroots platform Secure American Opportunity and urge lawmakers to strengthen language preventing crypto companies from offering interest-like rewards on payment stablecoins. Without additional changes, Nichols warned, “we believe the current proposal would unnecessarily incentivize the flight of bank deposits into payment stablecoins, putting both economic growth and financial stability at risk.”
Nichols added: “We believe that committee members may not be fully aware of the risks to the economy posed by the stablecoin loophole. Your immediate engagement can make a difference.” He also urged bank CEOs to encourage their own employees to engage in the advocacy effort.
