The American Bankers Association (ABA) has issued a warning regarding the potential impact of allowing interest payments on stablecoins. According to NS3.AI, the ABA expressed concerns that such a move could lead to a withdrawal of deposits from regional banks, subsequently reducing local lending capabilities. This warning comes in response to a report by the White House Council of Economic Advisers, which suggested that prohibiting interest on stablecoin holdings would not have a significant effect on regional banks. The ABA's caution highlights the ongoing debate over the regulation of stablecoins and their potential implications for the traditional banking sector.