TLDR
- Kraken CEO David Ripley directly responded to the American Bankers Association’s criticism of stablecoin interest yields.
- Ripley argued that customers should have the right to decide how and where they store their digital value.
- He claimed that banks profit from customer assets without offering fair returns or financial inclusion.
- Brooke Ybarra from the ABA stated that interest on stablecoins goes against their purpose as payment tools.
- Ripley dismissed this view, saying that Kraken supports access to financial tools once limited to the wealthy.
Kraken CEO David Ripley has sharply criticized the American Bankers Association (ABA) over its stance on stablecoin yields. The ABA claimed that interest-paying stablecoins harm traditional banking models, especially community support systems. Ripley countered by defending consumer choice and highlighting inefficiencies in the current banking structure.
Kraken Counters ABA’s Concerns on Stablecoin Interest
Kraken CEO David Ripley rejected claims that stablecoin yields harm banking institutions and local economies. Brooke Ybarra, senior VP at the ABA, said paying interest on stablecoins opposes their purpose. She stated such products should be limited to payments, not used as interest-bearing assets.
“This is about ensuring banks continue to be in a position to support their communities and power the economy.” ABA’s Jess Sharp and Brooke Ybarra unpack the state of the stablecoin debate and why this issue matters to banks and their customers. #ABAAnnual pic.twitter.com/QB6RRwMyTu
— American Bankers Association (@ABABankers) October 21, 2025
However, Ripley responded, “A detriment to who?” and argued that customers deserve the right to control their money. He stressed that banks keep earnings from deposits while limiting returns to customers. Therefore, Kraken promotes systems that offer fairer access to financial benefits.
Kraken continues to challenge traditional norms while expanding services that aim to level the financial playing field. Ripley said, “We are building toward something else.” The company plans to keep enabling new financial freedoms.
Industry Voices Back Kraken’s Defense
Kraken’s position drew strong support from across the digital asset community. Dan Spuller, from the Blockchain Association, criticized banks for resisting competition from platforms like Kraken and Coinbase. He claimed traditional players are “ruthlessly targeting” crypto exchanges to maintain dominance.
Spuller said the banking industry feels pressure because “competition’s winning” and customers are shifting preferences. Some stablecoins on platforms like Kraken offer yields up to 5%, much higher than traditional savings rates. According to Bankrate, the national average is only 0.6%, and high-interest savings top out at 4%.
Kraken and others see this as a turning point for user empowerment. More users choose to hold funds in stablecoins instead of bank deposits. This shift continues to challenge the financial status quo.
Regulatory Momentum Boosts Kraken’s Case
Kraken’s argument arrives amid growing regulatory clarity in the U.S. President Trump recently signed the GENIUS Act, addressing stablecoin oversight. This new framework may support broader usage and consumer confidence in stablecoins.
Haun Ventures’ Diogo Monica added that stablecoins could be safer than bank deposits. He explained top global banks or short-term Treasury bills back many stablecoins. Kraken benefits from these advantages while pushing for financial inclusion.
Beyond the U.S., Kraken and its peers face global resistance. In Australia, Binance users report banking barriers when accessing crypto services. Kraken continues to monitor such developments while maintaining its focus on expansion and user access.
