The post Kraken CEO hits back at ABA over stablecoin yield remarks appeared on BitcoinEthereumNews.com.

A new dispute has emerged between U.S. banks and crypto firms after comments about stablecoin interest products sparked public criticism from Kraken’s chief executive. Summary Kraken CEO David Ripley criticized the ABA for opposing stablecoin interest payments. The debate highlights growing competition between banks and crypto platforms The GENIUS Act passage provided a framework for stablecoin issuers to thrive. The ongoing rivalry between banks and crypto platforms took another turn this week as Kraken’s chief executive officer David Ripley pushed back against the American Bankers Association’s warning on stablecoin interest products. Ripley responded via an Oct. 22 post on X after the association’s senior vice president, Brooke Ybarra, said during the ABA Annual Convention that letting exchanges like Kraken pay interest on stablecoins would be “a detriment” to traditional banks. Banks warn of deposit flight Ybarra said stablecoin yields, some reaching up to 5%, could draw large sums away from the banking system, noting that they surpass the U.S. national savings rate of 0.6% and typical high-yield accounts at around 4%. The Treasury Borrowing Advisory Committee estimated that as much as $6.6 trillion could shift from deposits to stablecoins if such products become widely available. In her remarks, Ybarra argued that interest-bearing stablecoins could undermine banks’ role in community lending and financial stability. Kraken CEO fires back Ripley dismissed the ABA’s stance as “moat building,” saying it protects bank profits at the expense of consumer choice. He wrote that healthy competition strengthens markets and that customers should be free to decide where and how to hold value. He added that Kraken is working to make financial tools once limited to the wealthy accessible to everyone. This panel hosted by the American Bankers Association said allowing companies like @krakenfx or @coinbase to pay interest on stablecoins would be “a detriment.” A…

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Filed under: News - @ October 22, 2025 5:25 am