ABA Statement for the Record to the Subcommittee on Digital Assets for the Hearing, "Exploring Bipartisan Legislative Frameworks for Digital Assets"

The American Bankers Association (ABA) appreciates the opportunity to provide a Statement for the Record for this hearing, Exploring Bipartisan Legislative Frameworks for Digital Assets. ABA is the voice of the nation's $24.2 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2.1 million people, safeguard $19.1 trillion in deposits and extend $12.6 trillion in loans.

The digital asset market has been the subject of much attention over the last several years. Congress is right to focus on the ecosystem to better understand how the various entities in the market operate, what risks those operations present, and what regulations and legislation are necessary to ensure consumer and investor protection and financial stability without inhibiting innovation. In addition, Congress has an important oversight role to play in ensuring regulators do not – through guidance, policy, and other actions – inappropriately pressure banks to limit legal and permissible activities they perform safely and soundly. To that end, we appreciate the effort of many members of this Committee to rescind the Securities and Exchange Commission's misguided Staff Accounting Bulletin 121 policy.

As Congress, regulators, and the Administration develop a regulatory framework for digital assets, we urge them to apply the principle of "same activity, same risk, same regulation" and to ensure the resulting ecosystem operates with safeguards that appropriately mitigate financial stability and consumer protection risk. When these objectives are achieved, Congress will ensure all customers are protected equally, regardless of where they engage with the financial marketplace, and that the U.S. financial system remains strong, safe, and competitive.

Stablecoin is an area of particular interest to our members, given the token's similarity in use to commercial bank money. We have appreciated the opportunity to engage with stakeholders on development of a regulatory framework for stablecoin over the last several years, and we look forward to continuing that partnership. As we review proposals like the GENIUS Act, the key issues we are considering include how effectively the legislation applies the principle of "same activity, same risk, same regulation," mitigates financial stability and consumer protection risk, and preserves the foundational value of financial intermediation through the banking system and bank deposits relative to payment stablecoins.

Download the statement for the record to read the full text.