Kraken boss David Ripley has hit back at American Bankers Association executives who claimed stablecoin yields were “damaging” banks’ ability to support their communities.
Brooke Ybarra, senior vice president of innovation and strategy at the ABA, said if major crypto exchanges such as Kraken and Coinbase were allowed to pay interest on payment stablecoins, it would “uproot” the idea that stablecoins should be used for payments rather than as stores of value.
“Who's to the detriment?'' Ripley said. “Consumers should have the freedom to choose where they keep their value and the most efficient way to transmit that value.”
Kraken CEO claims crypto industry is building 'something else'
Ripley argued that banks earn fees on customers' assets without passing any profits back to them, adding:
“We are building a system that allows anyone to use services that were previously available only to the wealthy.”
Others in the crypto industry echoed Ripley's criticism. “Big banks are relentlessly targeting our friends at @Coinbase and @KrakenFX to protect their turf,” said Dan Spler, industry director at the Blockchain Association.
“In other words, the competition won,” Sparer said.
Brooke Ybarra of the American Bankers Association made the comments at the ABA Annual Conference. sauce: American Bankers Association
According to Bankrate data, some stablecoins offer up to 5% on deposits to certain cryptocurrency platforms, which is much more attractive than the US national average savings rate of just 0.6% and still above the best offered high interest rate of 4%.
“Create competition, it's a capitalist world after all,” said Solana developer Voss.
The comments come just months after US President Donald Trump signed the long-awaited Genius Act, a comprehensive regulatory framework for stablecoins that signals a potential move towards mainstream adoption.
The crypto industry is rebelling against TradFi
Stablecoins can potentially be safer than commercial bank deposits, according to Diogo Monica, general partner at Haun Ventures, who said in June that many stablecoins are backed by reserves held by global systemically important banks (G-SIBs) or short-term U.S. Treasuries, making them safer than commercial bank deposits.
Related: Japan's Financial Services Agency considers allowing banks to hold Bitcoin and other virtual currencies: Report
Tensions between the crypto industry and traditional banks have also increased recently outside the United States.
Australian crypto users continue to face banking barriers when engaging with exchanges and other crypto businesses, according to a recent study by Binance Australia.
Matt Poblocki, general manager of crypto exchange Binance's Australia and New Zealand operations, told Cointelegraph that seamless access to financial services directly impacts market participation, trust, and trust, creating barriers that can slow adoption and limit growth.
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