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American Bankers Association Pushes Senate to Tighten Stablecoin Reward Limits
American Bankers Association CEO Rob Nichols urged bank executives to press senators for tighter limits on stablecoin rewards before a Senate Banking Committee markup on sweeping crypto legislation. A May 2 compromise text from Sens. Angela Alsobrooks and Thom Tillis bars covered parties from paying U.S. customers interest or yield solely for holding stablecoins, but still allows activity-based or transaction-based incentives. Bank trade groups said those exceptions remain too broad and could still pull deposits away from traditional banks.