The US crypto industry's key legislative 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, prompting a rebuttal from the American Bankers Association. The ABA claims that the report analyzed the wrong scenario, focusing on a ban on stablecoin yield rather than the consequences of allowing such returns. The issue has sparked a heated debate, with lawmakers attempting to find a compromise that would ban yield on stablecoin holdings resembling deposit accounts and only permit rewards programs for activity.
However, the banking industry remains unconvinced, warning that the absence of intervention could lead to a rapid scaling of stablecoin markets, potentially accelerating the migration of funds out of bank deposits. Senator Cynthia Lummis, chair of the Banking Committee's digital assets subcommittee, has emphasized the need for clarity on the issue, while crypto insiders and bank representatives continue to clash over the proposed legislation.