ICBA push against stablecoin yield provision makes news

ICBA’s calls for policymakers to ensure digital assets market structure legislation does not harm access to credit in local communities—ahead of the Senate Banking Committee delaying a markup on the bill—has made headlines this week in national media.

Media Reports: In American Banker (subscription required), ICBA President and CEO Rebeca Romero Rainey said policymakers must fully bar crypto exchanges, affiliates, and other intermediaries—not just issuers—from paying interest, yield, or rewards on payment stablecoin holdings. Other publications such as Politico Pro and Punchbowl News (subscriptions required) have spotlighted advocacy by ICBA and community bankers.

ICBA Op-ed: While conducting a grassroots, media, and advertising campaign in the nation’s capital and key states, ICBA also this week published a CoinDesk op-ed on the yield issue. ICBA Digital Assets Subcommittee Chairman Kevin Paintner cited research showing the risks to small businesses and job creation.

Markup Delay: The committee late Wednesday announced the delay of the markup after the Coinbase crypto exchange withdrew support for the draft legislation due to its concerns about further expansion of the yield prohibition amid persistent ICBA advocacy. A new date has not been set, and the committee is expected to continue negotiations on the legislation.

Real-World Data: A recently released ICBA data analysis shows allowing crypto intermediaries to pay interest or yield on payment stablecoin holdings could reduce community bank lending by $850 billion due to a $1.3 trillion reduction in the industry’s deposits.

Grassroots Campaign Continues: With Congress continuing negotiations over digital assets legislation, ICBA continues calling on community bankers to use its Be Heard grassroots action center to urge lawmakers to ensure digital assets legislation bars all market participants from offering yield, interest, or rewards on payment stablecoins.