The American Bankers Association (ABA) CEO Rob Nichols has reiterated calls for stricter regulations on stablecoin rewards, urging a ban on crypto platforms offering deposit-like interest through rewards or cashback programs to stablecoin holders. The ABA warns that such mechanisms could divert bank deposits to stablecoins, posing risks to financial stability and credit supply. The controversy centers on platforms like Coinbase and Kraken, which provide USDC users with returns of 3.5%-5% through subscription or reward plans, exploiting what banks see as regulatory loopholes despite laws prohibiting stablecoin issuers from paying interest.