Coinbase's Chief Policy Officer pushed back against the American Bankers Association, stating there is no evidence that stablecoin rewards will lead to bank deposit outflows.

Coinbase Chief Policy Officer Faryar Shirzad published an article pushing back against the American Bankers Association (ABA)’s concerns over stablecoin rewards. She noted that the ABA argues stablecoin platforms offering rewards would trigger deposit outflows from community banks and erode local lending, but existing data does not support this claim. Current laws already permit such rewards, and Coinbase has been paying rewards to USDC users for over four years. Shirzad pointed out that between June 2019 and March 2026, community bank deposits rose by 26%, an increase of roughly $482 billion; a study by Charles River Associates and the U.S. Council of Economic Advisers also found no significant correlation between stablecoins and bank deposits. The ABA is not seeking to amend technical details in the CLARITY Act. The current text prohibits users from earning returns solely on idle funds, but allows rewards for legitimate activities; the ABA’s proposed changes could expand restrictions to general stablecoin use cases, leaving questions such as whether merchant rebates qualify as bank interest to regulators and litigation for resolution. Shirzad called for retaining the existing compromise and passing the CLARITY Act, stating that the legislation would grant banks new powers including custody, staking, lending, payments, clearing, and market making.