ICBA Urges Congress to Preserve Access to Credit by Extending Prohibition on Yield-Bearing Stablecoins

Washington, D.C. (Oct. 8, 2025) - As the Senate considers legislation to establish a regulatory framework for digital assets markets, the Independent Community Bankers of America (ICBA) today is calling on lawmakers to ensure the legislation prohibits digital asset exchanges and affiliates from paying interest or yield to payment stablecoin holders.

"Community banks make 60% of U.S. small-business loans under $1 million and provide nearly 80% of the banking industry's agricultural lending to power Main Street America, so preserving needed credit for local communities must be the top priority as the Senate considers digital assets market structure legislation," ICBA President and CEO Rebeca Romero Rainey said. "Prohibiting crypto exchanges and affiliates from offering interest, yield, or rewards on payment stablecoins - as the GENIUS Act does for payment stablecoin issuers under its purview - will maintain the intended purpose of stablecoins for payments and help avoid a flight of FDIC-insured domestic deposits to global crypto conglomerates that do not have the same regulatory oversight or local commitment as community banks. This is a critical guardrail needed to preserve access to credit in Main Street communities and keep funding in the real economy to sustain growth. America's local communities cannot afford for Congress to change course on this critical issue and undermine a community banking system that is fundamental to our nation's economic health."

The Treasury Borrowing Advisory Committee and Federal Reserve Bank of Kansas City have warned that digital assets pose a significant threat to the deposits that banks use to fund lending to U.S. businesses and would impair credit availability in communities across the country. With community banks serving an outsized role as small-business and agricultural lenders - including by making nearly 90% of small-dollar farm loans and holding nearly two-thirds of rural deposits - and crypto exchanges actively working to replace community banks, disrupting this critical source of credit would pose significant harm to local communities.

Congress took the first step to restrict the payment of interest and yield by payment stablecoin issuers with the GENIUS Act. ICBA is calling on lawmakers to address payment of interest or yield by other digital asset market participants, which are the focus of the market structure legislation, to maintain Americans' access to credit.

ICBA thanks Congress and the Trump administration for working with the nation's community bankers throughout the debate over digital assets regulation and looks forward to continuing to work together to ensure ongoing access to credit in local communities nationwide.

About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation's community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America's community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers' financial goals and dreams. For more information, visit ICBA's website at icba.org.