If you live in the United States, this weekend is the perfect opportunity to crush that Netflix series you've always wanted to watch. Nearly 30 states will get hit with snow, sleet, and freezing rain. As much as I love to get outside, the better move right now is to stay indoors and fire up some television.
The American Bankers Association placed stablecoin rewards at the forefront of its 2026 policy agenda, escalating an industry-wide campaign against digital-dollar incentive programs that banks claim threaten deposit bases and community lending capacity.
The trade group’s newly released Blueprint for Growth explicitly calls on Congress to “stop payment stablecoins from becoming deposit substitutes that slash community bank lending by prohibiting paying interest, yield or rewards regardless of the platform.“
ABA President and CEO Rob Nichols said the priorities were developed through collaboration with all 52 state bankers’ associations to advance policies that “bolster the economy, expand access to credit and enhance competition in the financial services marketplace.“
The document positions stablecoin yield restrictions as the association’s leading economic priority ahead of fraud prevention, regulatory threshold indexing, and support for minority-serving financial institutions.
Just released – ABA’s 2026 Blueprint for Growth outlines key policy priorities: https://t.co/KsOScu1Lgs pic.twitter.com/C3gMrXQn84
— American Bankers Association (@ABABankers) January 20, 2026
The coordinated push comes as Senate Banking Committee negotiations over digital asset market structure legislation remain deadlocked over stablecoin reward provisions.
Banking executives have spent months warning that yield-bearing tokens could trigger massive deposit outflows, with Bank of America CEO Brian Moynihan estimating that $6 trillion in deposits could migrate into stablecoins under permissive regulatory frameworks.
JPMorgan CFO Jeremy Barnum also warned during the bank’s fourth-quarter earnings call that interest-bearing stablecoins risk creating “a parallel banking system that sort of has all the features of banking, including something that looks a lot like a deposit that pays interest, without the associated prudential safeguards.“
— Cryptonews.com (@cryptonews) January 14, 2026
Community bankers have been particularly vocal, with the Community Bankers Council urging Congress in early January to close what it called a “loophole” allowing stablecoin issuers to indirectly fund yield through exchange partners.
The group warned that large-scale deposit outflows could reduce credit availability for small businesses, farmers, students, and homebuyers in local communities.
Senator Tim Scott’s draft crypto market structure bill released January 9 includes language prohibiting digital asset service providers from paying interest or yield solely for holding stablecoins, though the provision allows activity-based rewards tied to functions like staking and liquidity provision.
A coalition of 125 crypto and fintech organizations, including Coinbase, PayPal, Stripe, Ripple, and Kraken, delivered a forceful rejection of expanded yield restrictions in December.
The Blockchain Association-led group argued that banking industry efforts represent “overtly protectionist” measures rather than consumer protection, noting that banks face no similar restrictions on credit card rewards despite engaging in riskier balance-sheet activities.
“The push to restrict stablecoin rewards beyond that agreed to in GENIUS is not a technical refinement or a consumer protection fix,” the coalition stated.
“It would prohibit the same types of incentive programs for stablecoin payments that banks have long offered on credit cards and other types of payment services.“
Just yesterday, Circle CEO Jeremy Allaire called banking concerns “totally absurd” during a World Economic Forum panel, drawing parallels to historical opposition to money market funds.
— Cryptonews.com (@cryptonews) January 22, 2026
“The exact same arguments were made,” Allaire stated, noting that roughly $11 trillion in money market funds has grown without preventing lending activity.
He emphasized that all major stablecoin regulations prohibit issuers from paying interest directly, while partner platforms may offer rewards based on commercial arrangements.
“Rewards around financial products exist in every balance that you have with a credit card that you use,” Allaire said.
The crypto coalition disputed Treasury projections suggesting yield-bearing stablecoins could result in up to $6.6 trillion in deposit flight, citing analysis that found no evidence of disproportionate deposit outflows from community banks.
The groups questioned how banks can claim deposit constraints while holding $2.9 trillion in reserve balances at the Federal Reserve.
Coinbase CEO Brian Armstrong said the exchange could not back Scott’s draft bill, citing provisions that would eliminate stablecoin rewards.
These divisions come as global stablecoin transaction volumes reached $33 trillion in 2025, up 72% from the previous year, with USDC processing $18.3 trillion.
Bloomberg Intelligence predicted that flows could reach $56 trillion by 2030 as institutional payment infrastructure adoption accelerates.
For now, the Banking Committee may postpone further work until late February or March, following Coinbase’s withdrawal of support and divided attention to the new housing policy agenda demanded by Trump.
However, the Senate Agriculture Committee has scheduled a markup of competing legislation for January 27 that takes a fundamentally different approach by excluding payment stablecoins from CFTC authority entirely and deferring regulation to frameworks like the GENIUS Act rather than setting specific yield rules.
The post Banks Make Killing Stablecoin Yields Their Top 2026 Priority appeared first on Cryptonews.
A sharp comment from a well-known XRP Ledger developer has sparked fresh debate around savings, inflation, and what smart money looks like today.
Bird, the developer behind the XRPL-based meme coin DROP, drew attention after saying that anyone holding more value in XRP than in their bank account is a “genius.”
The word choice was bold, and it quickly spread across social media, pulling in both supporters and critics.
According to Bird, the label has less to do with bragging rights and more to do with awareness. He argues that many people trust banks by default, assuming savings accounts protect their future.
The problem, he says, is math. Savings rates around 4–6% often fail to keep pace with rising prices. Groceries, rent, transport, and healthcare keep climbing.
Over time, money sitting still can quietly lose strength. In that light, Bird frames holding XRP as a sign of foresight rather than recklessness.
If you have more money in $XRP than in your bank account, you’re a genius.
— Bird (@Bird_XRPL) January 11, 2026
XRP prices can swing hard in short periods, something banks are built to avoid. A savings account may feel boring, but it offers stability and fast access when bills arrive or emergencies hit.
That difference matters. Long-term holders respond that XRP was never meant to act like a checking account. It is treated as an asset tied to future payment rails and global transfers, not day-to-day spending money. The “genius” remark, they say, speaks to time horizon, not short-term comfort.
Utility Gains After Years Of Pressure
XRP spent years weighed down by legal uncertainty while its network continued to expand behind the scenes. With parts of that pressure easing, attention has shifted back to usage.
Cross-border payments remain a core focus. Stablecoin activity, including RLUSD, has increased. Tokenization of real-world assets is also being explored on the XRP Ledger. Supporters believe this growing use gives XRP value beyond price charts.
How Much Is Enough Depends On You“ What’s the right amount of $XRP to hold? “
The truth is… it’s completely subjective.
We all live in different countries, have different costs, jobs, savings, families, goals. Some people chase money, some chase freedom. Some need security for health, travel, retirement,… https://t.co/A5g5Oa4f7c
— Bird (@Bird_XRPL) January 10, 2026
Bird has also raised a question that keeps coming up online: what amount of XRP is “right.” Reports note he often mentions 10,000 XRP as a rough reference, not a target.
His thinking is simple. If XRP ever trades in double digits, that holding turns into a six-figure sum in US dollars. For some people, that could mean freedom. For others, it might only ease pressure. Living costs, family size, health needs, and location all shape what “enough” really means.
Calling someone a genius makes for catchy headlines, but real life sits in the middle. Keeping some money in banks helps cover daily needs. Holding assets like XRP is a bet on future systems and long-term growth.
Featured image from Gemini, chart from TradingView
Bitcoin Magazine
Coinbase CEO Brian Armstrong Accuses Banks of Undermining Trump’s Crypto Agenda
Coinbase CEO Brian Armstrong has accused major U.S. banks of attempting to sabotage President Donald Trump’s pro-crypto agenda, warning that proposed changes to a Senate market structure bill could stifle innovation, ban entire categories of digital assets and strip Americans of the ability to earn yield on stablecoins.
In a wide-ranging interview with Fox Business anchor Maria Bartiromo on Mornings With Maria, Armstrong said the latest draft of legislation emerging from the Senate Banking Committee represents a “giveaway to the banks” that risks regulatory overreach and undermines recent bipartisan progress on crypto policy.
“After reviewing the Senate Banking draft over the last 48 hours, Coinbase unfortunately can’t support this bill as written,” Armstrong said, citing provisions that would effectively ban tokenized securities, impose broad prohibitions on decentralized finance (DeFi), weaken the Commodity Futures Trading Commission (CFTC), and eliminate rewards on stablecoins.
While praising the Senate’s broader efforts — including work led by Senators Tim Scott and Cynthia Lummis — Armstrong said the draft text circulated earlier this week raised “dangerous” issues that would be harder to fix once the bill reached the Senate floor.
At the center of the dispute is stablecoin rewards. Armstrong argued that recent legislation, including the GENIUS Act signed into law under President Trump, explicitly enabled stablecoin issuers to pay yield, a feature he described as critical to giving Americans better returns on their money.
“The banks are really coming and trying to undermine the president’s crypto agenda,” Armstrong said. “They’re trying to protect their own profit margins, taking money out of the pockets of hardworking, average Americans and putting it into the coffers of big banks hitting record profits.”
Armstrong contrasted stablecoins — which under the GENIUS Act must be backed 100% by short-term U.S. Treasuries — with traditional fractional-reserve banking, arguing that stablecoins carry less systemic risk. “There is no fractional reserve with these stablecoins,” he said. “They should not be subject to the same regulation as banks.”
Bartiromo pressed Armstrong on whether crypto platforms should face the same regulatory burdens as banks, including deposit insurance and investor protections.
Armstrong responded that such frameworks exist primarily to manage risks created by fractional-reserve lending, noting that FDIC insurance only covers deposits up to $250,000.
“If customers want to opt in to lending out their funds, they can do that,” he said. “You don’t need a bank license to do that. What requires a bank license is lending out people’s money without their permission.”
Armstrong also pushed back on claims that stablecoins threaten community banks, calling the argument a “red herring” advanced by large financial institutions. He said there is no evidence that community banks are losing deposits to stablecoins, adding that consolidation driven by big banks has posed a far greater threat since the Dodd-Frank era.
The Coinbase CEO also criticized Senate language that would subordinate the CFTC to the Securities and Exchange Commission (SEC), requiring crypto assets to pass through the SEC before potentially falling under CFTC jurisdiction.
“I can’t imagine why the Senate Ag Committee would make the CFTC a subsidiary of the SEC,” he said, pointing to the House-passed CLARITY Act, which clearly delineates oversight between digital commodities and securities.
Looking ahead, Armstrong said he remains optimistic that lawmakers can revise the Senate bill to align with President Trump’s crypto agenda. However, he issued a clear warning: “It’s better to have no bill than a bad bill.”
“If it prohibits entire categories of new products like tokenized equities, I’d rather have no bill,” Armstrong said. “We’re not going to cement something into law if it harms ordinary Americans and bans competition.”
This post Coinbase CEO Brian Armstrong Accuses Banks of Undermining Trump’s Crypto Agenda first appeared on Bitcoin Magazine and is written by Micah Zimmerman.
Bitcoin Magazine
Belarus Creates Legal Framework for Bitcoin and Crypto Banks in New Decree
Belarusian President Alexander Lukashenko has signed Decree No. 19 “On Cryptobanks and Certain Issues of Control in the Field of Digital Tokens,” officially creating a legal framework for bitcoin and crypto banks in the country.
The decree makes Belarus a hub for financial technology innovation while providing a regulated path for cryptocurrency services.
Under the new law, a crypto bank is defined as a joint-stock company that is a resident of Belarus’ High-Tech Park (HTP) and included in a registry maintained by the National Bank of Belarus.
These institutions can offer both traditional banking services — such as deposits, loans, and transfers — and activities involving digital tokens, creating a hybrid financial model that blends fiat and crypto operations.
Only firms registered with the HTP and listed in the National Bank’s crypto bank registry will be eligible to operate. Crypto banks will not be full commercial banks but will function as non-bank financial institutions, subject to dual regulation.
This means they must comply with rules for non-bank credit and financial institutions, including capital adequacy, risk management, anti-money laundering (AML) and counter-financing of terrorism (CFT) obligations, as well as consumer protection standards.
They are also required to follow decisions made by the HTP Supervisory Board.
The decree is part of Belarus’ broader push to integrate digital finance with traditional banking infrastructure. “Dual regulation will allow a crypto bank to offer clients innovative financial products that combine the advantages of traditional banking operations with the technological efficiency, speed, and convenience of digital token transactions,” the presidential website noted.
JUST IN: Belarusian President Alexander Lukashenko signs decree to allow for the creation of "crypto banks" in the country
— Bitcoin Magazine (@BitcoinMagazine) January 16, 2026
Belarus has a history of early adoption of crypto regulations. A 2017 decree established tax-free conditions for cryptocurrency mining and trading, eliminating the need for individuals to declare crypto income.
In recent years, Lukashenko has also promoted virtual payment systems and bitcoin mining projects, including using surplus electricity to power mining farms in the Mogilev region.
The country is expected to launch its digital ruble in full-scale operation in the second half of 2026.
For local users and businesses, the new framework could ease access to hybrid financial products that link fiat and digital currencies. By enabling smoother and faster settlement, crypto banks may reduce friction when moving between traditional and crypto-based transactions. The decree also provides clear regulatory boundaries, ensuring that crypto operations remain fully backed by fiat and subject to oversight.
Globally, Belarus’ move aligns with trends toward on-chain finance and tokenized assets, as banks and financial institutions explore blockchain technology for payments, trading, and asset management.
Just yesterday, Belgium’s KBC Group said they will become the first local bank to let retail clients trade crypto, starting February 16 via its Bolero platform under EU’s MiCAR rules.
Initially offering Bitcoin and Ether on an execution-only basis, clients must pass a risk-awareness test before trading.
This post Belarus Creates Legal Framework for Bitcoin and Crypto Banks in New Decree first appeared on Bitcoin Magazine and is written by Micah Zimmerman.
Morgan Stanley projects Europe’s banks could cut about 10% of jobs by 2030 as AI and branch closures drive cost cuts under investor pressure.
The post Morgan Stanley Warns AI Could Eliminate 200,000 Banking Jobs in Europe appeared first on TechRepublic.
Morgan Stanley projects Europe’s banks could cut about 10% of jobs by 2030 as AI and branch closures drive cost cuts under investor pressure.
The post Morgan Stanley Warns AI Could Eliminate 200,000 Banking Jobs in Europe appeared first on TechRepublic.
EXECUTIVE SUMMARY:
The financial sector is a leading target for cyber criminals and cyber criminal attacks. Markedly improving the sector’s cyber security and resilience capabilities are a must. While the sector does have a comparatively high level of cyber security maturity, security gaps invariably persist and threaten to subvert systems.
As Check Point CISO Pete Nicoletti has noted, attackers only need to get it right once in order to catalyze strongly negative, systemic consequences that could send shockwaves throughout companies and lives across the globe.
In this article, discover financial sector trends, challenges and recommendations that can transform how you see and respond to the current cyber threat landscape.
The potential for losses is substantial, especially when multiplied in order to account for downstream effects.
The majority of financial leaders lack confidence in their organization’s cyber security capabilities, according to the latest research.
Eighty-percent of financial service firm leaders say that they’re unable to lead future planning efforts effectively due to concerns regarding their organization’s abilities to thwart a cyber attack.
There is a significant gap between where financial sector institutions want to be with cyber security and where the industry is right now.
Beyond cyber security, financial sector groups need to concern themselves with business continuity in the event of disruption — which is perhaps more likely than not.
“While cyber incidents will occur, the financial sector needs the capacity to deliver critical business services during these disruptions,” writes the International Monetary Fund.
A major disruption – the financial sector equivalent of the Colonial Pipeline attack – could disable infrastructure, erode confidence in the financial system, or lead to bank runs and market selloffs.
To put the idea into sharper relief, in December of 2023, the Central Bank of Lesotho experienced outages after a cyber attack. While the public did not suffer financial losses, the national payment system could not honor inter-bank transactions for some time.
Organizations need innovative approaches to cyber security — approaches that prevent the latest and most sophisticated threats. Approaches that fend off disaster from a distance.
| In 2023, nearly 30 different malware families targeted 1,800 banking applications across 61 different nations. |
At Check Point, our AI-powered, cloud-delivered cyber security architecture addresses everything — networks, endpoints, cloud environments and mobile devices via a unified approach.
We’ve helped thousands of organizations, like yours, mitigate risks and expand business resilience. Learn more here.
For additional financial services insights, please see CyberTalk.org’s past coverage. Lastly, to receive cyber security thought leadership articles, groundbreaking research and emerging threat analyses each week, subscribe to the CyberTalk.org newsletter.
The post Evolving cyber security in the financial services sector appeared first on CyberTalk.
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