Banks seek to stop stablecoin earnings

Bank of America is putting pressure on Congress to ban stablecoin earnings programs and warns that interest payments could drain deposits and undermine loan stability. Stablecoin advocates, including Coinbase, retorted that the bank’s goal is to protect $187 billion in annual payment processing profits rather than financial stability. The debate highlights tensions in the process of stablecoins developing into mainstream payment systems, with the GENIUS Act already banning direct issuer earnings but leaving room for exchange-based rewards. Meanwhile, Canada is pushing forward its regulated Canadian dollar-backed stablecoins, emphasizing global competition in the field of digital currency innovation.