ABA Survey: About Two-Thirds of Consumers Support Limiting Stablecoin Yields to Reduce Financial Risks

Gate News, March 10 — A recent survey released by the American Bankers Association (ABA) shows that most consumers support restricting the earnings on stablecoins if such profits could pose risks to the banking system.

The survey, conducted by Morning Consult, aimed to understand public opinions on stablecoins, financial technology innovation, and related regulatory policies. The results indicate that about two-thirds of respondents (roughly a 3:1 ratio) support congressional limits on stablecoin rewards if such earnings could reduce the funds banks use for community lending and supporting economic growth. Additionally, respondents, at a 6:1 ratio, believe that legislation related to stablecoins should be cautious and avoid measures that could weaken the existing financial system, especially community banks that rely on the banking system to support local economic activities.

As this survey was released, the U.S. Congress is discussing legislation on the structure of the crypto market, with whether stablecoins should be allowed to offer yields to holders becoming a central issue in the debate between the banking industry and the crypto sector. The banking industry argues that if stablecoins provide yields, it could attract funds away from traditional bank accounts, impacting bank deposit bases and lending capacity. Rob Nichols, President and CEO of ABA, stated that the banking industry welcomes competition and innovation, and many banks are interested in entering the digital asset market. However, they oppose allowing new entrants to offer financial products similar to banks without a level playing field in regulation.