Bank opposition to stablecoin yields is unfounded; experts say consumer rights should be prioritized.

American cryptocurrency lecturer and part-time professor at Columbia Business School Omid Malekan recently publicly criticized the U.S. banking industry’s concerns over stablecoin yields, calling them “groundless fallacies,” and pointed out that related lobbying efforts are slowing down the key crypto market structure legislation process in 2026.

Omid Malekan stated that the current Washington debate over stablecoin regulation is not primarily about systemic financial risk, but about banks wanting to monopolize reserve interest income. He noted that the claim that “stablecoins will trigger bank deposit runs” is exaggerated. In fact, a large portion of stablecoin demand comes from overseas markets, and issuers need to hold government bonds and bank deposits as reserves, which could actually expand the overall size of the banking system.

On the lending side, Omid Malekan believes that stablecoins do not weaken credit supply, but only compress banks’ profit margins. Banks can fully participate in competition by raising deposit interest rates. Currently, the average interest rate on U.S. savings accounts remains significantly low, which is an important reason for funds flowing into stablecoins. Additionally, the U.S. banking system provides only about 20% of credit, with the rest mainly coming from money market funds and private lending channels.

He also emphasized that the truly under pressure are not community banks, but large money-center banks that rely on low-cost deposits for profits. Preventing stablecoins from sharing yields with users essentially sacrifices depositors’ interests and protects the profits of established financial institutions. Lawyer John Deaton also pointed out that senators are facing strong lobbying pressure from banks demanding restrictions on stablecoin reward mechanisms.

Omid Malekan finally called on the U.S. Congress to prioritize consumer rights and financial innovation over bank profits in the 2026 crypto regulation legislation, rather than being swayed by unverified risk narratives.