BlockBeats News, May 11th, the American Bankers Association (ABA) CEO Rob Nichols sent a letter to major bank executives urging them to pressure lawmakers to further restrict the stablecoin "interest-like reward" mechanism ahead of the Senate Banking Committee's deliberation on cryptocurrency legislation.

Nichols stated that the current legislation has not adequately prevented cryptocurrency companies from offering "interest-like" incentives through stablecoins, which could lead bank deposits to flow into payment-type stablecoins, thereby threatening financial stability and economic growth.

It is reported that the Senate Banking Committee will deliberate on the first comprehensive cryptocurrency regulatory framework in the United States this Thursday. Previously, lawmakers have proposed a compromise that prohibits stablecoin issuers from directly paying interest or returns to U.S. users but allows for reward mechanisms associated with transactional activities. This proposal has received support from cryptocurrency companies like Coinbase, but banking industry groups believe that there are still loopholes in the related exemption clauses.