The American Bankers Association has listed "preventing stablecoins from generating yields" as its top lobbying goal for 2026. The association argues that interest-bearing stablecoins could become a substitute for bank deposits, potentially leading to trillions of dollars flowing out of the traditional banking system, weakening banks' lending capacity and jeopardizing their core role in the financial system. In response, Circle CEO Jeremy Allaire countered at the Davos Forum, calling concerns about stablecoin yields affecting bank deposits "completely absurd," pointing out that yields can enhance user stickiness and that stablecoins will become an essential payment system for AI agents conducting large-scale transactions in the future. Opponents argue that this move aims to protect bank interests, restrict fintech innovation, and put the dollar at a disadvantage in competition with China's digital yuan. (Cryptopolitan)