The battle between Stablecoins and traditional banks intensifies, with the American Bankers Association listing "Ban on Stablecoin Yield" as a top priority issue
In BlockBeats news on January 23, the American Bankers Association (ABA) stated that it will make "Suppressing Interest/Earnings/Reward-bearing Payment Stablecoins" a top policy priority in 2026, showing concerns about stablecoins becoming a substitute for bank deposits.
Earlier this month, Bank of America's CEO warned that if the U.S. Congress does not restrict interest-bearing stablecoins, up to $60 trillion in deposits could move away from banks, representing about 30% to 35% of total U.S. commercial bank deposits. The CEO mentioned that stablecoins operate like money market mutual funds, holding reserves in short-term instruments (e.g., U.S. Treasuries) instead of using them for bank loans as traditional banks do. In this model, funds move outside the traditional banking system, causing a contraction in the deposit base that banks rely on to support household and business lending.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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The number of initial unemployment claims in the US last week fell to 197,000, one of the lowest levels since 1969.
The US labor market demonstrates resilience, as initial jobless claims for the week ending September 19 fell to 197,000, the lowest level since July and one of the lowest readings since 1969. The four-week average also declined, indicating that high interest rates have yet to trigger large-scale layoffs. However, the market shows a structural feature of "low layoffs but uneven hiring," with job-seeking and job-hopping opportunities still limited.

