A U.S. senator took direct aim at the banking industry's resistance to pending stablecoin legislation during a committee session on Wednesday, calling the fight one over competition, yields, and control. The remarks came as the American Bankers Association urged top bank CEOs to engage immediately on the bill.
The senator's broadside
Sen. Bernie Moreno (R-Ohio), a member of the Senate committee responsible for marking up the stablecoin bill, didn't mince words. He argued that banks are opposing the legislation not because of technical flaws but because they want to preserve their grip on dollar-based financial products and the interest they generate. "This is about who gets to offer a digital dollar and who keeps the yield," Moreno said in a committee session, according to a participant familiar with the exchange. The Ohio Republican framed the dispute as a fundamental choice: let non-bank innovators compete or let traditional lenders smother the market before it starts.
Banks push back
The American Bankers Association, the industry's main trade group, didn't wait for the markup to respond. In a memo circulated to member bank CEOs, the ABA called for "immediate engagement" on the stablecoin bill, warning that the legislation as written could sideline regulated banks. The memo, reviewed by GFdaily, urged executives to contact their senators directly ahead of the markup. The ABA did not comment publicly on Moreno's remarks.
What's at stake in the markup
The stablecoin bill, which has bipartisan support in the Senate, would create a federal framework for issuing digital tokens pegged to the dollar. It would allow non-bank firms to obtain a license from the Office of the Comptroller of the Currency, a move banks argue could create an uneven playing field. Moreno, however, sees the banks' pushback as a last-ditch effort to preserve their dominance. He said the bill is designed to spur competition, not undermine safety, and noted that stablecoins could eventually offer consumers higher yields than traditional savings accounts.
The committee is expected to begin the markup session later this week. The outcome remains uncertain, but Moreno's criticism signals that the banking lobby faces a tough fight. For now, both sides are digging in.
