The US crypto industry's efforts to pass the Digital Asset Market Clarity Act have been hindered by a disagreement over stablecoin yield. The American Bankers Association has responded to a White House economists' report, arguing that the wrong scenario was analyzed. The association claims that allowing stablecoin yield would pose a risk to bank deposits, and that a ban on yield is necessary to prevent stablecoins from becoming a substitute for insured bank deposits.
This debate has stalled the Senate legislation for months, with lawmakers attempting to find a compromise. The bankers argue that without intervention, stablecoin markets could rapidly scale, leading to a migration of funds out of bank deposits. The absence of a resolution on this issue is making it increasingly difficult to pass the Clarity Act, with crypto insiders and bank representatives holding differing views on the matter.