The US crypto industry's main policy effort, the Digital Asset Market Clarity Act, remains stalled due to disagreements over stablecoin yield. Bankers argue that the White House economists' report underestimated the risks, while the crypto industry claims that regulating stablecoin yield is unnecessary.
The American Bankers Association asserts that allowing stablecoin yield could lead to a significant migration of deposits out of traditional banks, posing a threat to the stability of the banking system. The debate has been ongoing, with lawmakers attempting to find a compromise that addresses the concerns of both the banking and crypto industries. The longer the debate continues, the more challenging it will be to pass the Clarity Act, which aims to provide regulatory clarity for the US crypto market.