The American Bankers Association (ABA) has pushed back against a White House economic report suggesting stablecoin yields pose no significant threat to bank deposits, according to a newly released study. The banking trade group argues the Treasury Department’s analysis overlooked key competitive dynamics between crypto products and traditional savings accounts.
The dispute centers on a February 2026 report from the White House Council of Economic Advisers (CEA) that found ‘limited evidence’ of deposit migration due to stablecoin yields. ABA researchers counter that the CEA examined outdated market conditions before major financial institutions began offering crypto yield products. ‘When you have JPMorgan and Goldman offering 5% APY on USD-pegged tokens, that absolutely changes the calculus,’ said one banking analyst familiar with the study.
Federal Reserve data shows commercial bank deposits declined 4% year-over-year as of Q1 2026, coinciding with increased adoption of regulated stablecoin products. However, Treasury officials maintain the outflow stems primarily from interest rate hikes rather than crypto competition. ‘We stand by our methodology,’ a CEA spokesperson told reporters.
The debate comes as Congress considers the Stablecoin Innovation Act, which would establish federal oversight for dollar-pegged cryptocurrencies. Banking lobbyists are reportedly seeking amendments to limit non-bank issuers’ ability to offer yield-bearing products. ‘This isn’t just about deposits – it’s about maintaining the stability of the credit system,’ an ABA representative noted in a briefing.
Market observers suggest the conflict may intensify as more institutional investors allocate to crypto yield strategies. BlackRock’s USD Digital Liquidity Fund recently surpassed $20 billion in assets, offering institutional clients Treasury-bill yields via blockchain settlement. ‘The lines between traditional finance and crypto are blurring faster than regulators anticipated,’ said a fintech policy advisor speaking on background.