Banking groups challenge OCC stablecoin rule over $850 billion lending threat

Two major banking trade groups, including the American Bankers Association, are pushing back on the OCC over a stablecoin rule they say lets crypto platforms exploit yield loopholes. Community bankers warn the framework could drain $850 billion from lending. Traders should watch for regulatory tightening on stablecoin rewards, which could pressure crypto platform revenue models and slow stablecoin adoption.