The US crypto industry's main policy push, the Digital Asset Market Clarity Act, remains stalled due to disagreements over stablecoin yields. Bankers have fired back at a recent White House report, claiming that economists analyzed the wrong scenario.
The American Bankers Association believes that allowing stablecoin returns could lead to a mass exodus of depositors from banks, chasing higher yields. A recent study by the ABA suggests that the absence of intervention on stablecoin yield could result in rapid market growth, from $300 million to $2 trillion, with yield becoming a key driver of migration out of bank deposits.
The conflict has derailed Senate legislation, with lawmakers struggling to find a compromise between regulating stablecoins and protecting bank deposits.