OBL Urges Greater Clarity in Stablecoin Legislation

07/15/26

The Ohio Bankers League continues to support responsible financial innovation while advocating for a regulatory framework that protects consumers, preserves the stability of the banking system and promotes fair competition.

As Congress considers digital asset legislation, the Ohio Bankers League has joined banking associations from across the country in urging lawmakers to strengthen provisions governing payment stablecoins. Specifically, the coalition is calling for targeted revisions to ensure payment stablecoins function as payment tools and not as substitutes for traditional bank deposits.

While lawmakers have made meaningful progress in addressing concerns raised by the banking industry, questions remain about whether the current language in the legislation provides sufficient clarity. Without stronger guardrails, certain provisions could unintentionally allow payment stablecoins to operate in ways that encourage consumers to move funds away from insured bank deposits.

The coalition has recommended several targeted changes that would strengthen the legislation, including clarifying the prohibition on interest, yield and similar incentive programs tied to payment stablecoins. The proposed revisions would also eliminate ambiguity surrounding rewards based on stablecoin balances or the length of time they are held.

These changes are intended to reinforce Congress's original objective of ensuring payment stablecoins are used to facilitate transactions rather than serve as store-of-value products that compete directly with bank deposits.

The Ohio Bankers League believes clear, well-defined rules will encourage responsible innovation while protecting consumers, maintaining confidence in the banking system and minimizing unintended consequences for local communities. OBL will continue working with policymakers and industry partners to support legislation that fosters innovation while preserving the critical role banks play in serving Ohio families, businesses and communities.