PNC Bank CEO Bill Demchak has criticized the dual role stablecoins are attempting to play, warning that they must choose between being a payment tool or a money market fund. During PNC's fourth quarter earnings call, Demchak highlighted the ongoing debate in Washington over whether stablecoins should be allowed to offer interest, a move he argues would require them to adhere to the same regulations as traditional financial products. Demchak emphasized that stablecoins were originally designed for efficient money transfers, not as investment vehicles. He stated that if stablecoins begin paying interest, they should undergo the same regulatory scrutiny as money market funds. This comes amid legislative discussions on how to define and regulate stablecoins, with the Senate Banking Committee's market structure legislation facing delays. Demchak's comments underscore the tension between traditional banks and crypto firms as they navigate the evolving regulatory landscape.