The U.S. crypto industry's push for regulatory clarity, embodied in the Digital Asset Market Clarity Act, has been stalled due to disagreements over stablecoin yields. Bankers argue that allowing these yields could endanger bank deposits, contrary to a recent White House report. The American Bankers Association claims the White House economists analyzed the wrong scenario, focusing on banning stablecoin yields instead of considering the consequences of allowing them.
This dispute has hindered the progress of the Clarity Act, which aims to regulate the U.S. crypto market.
Lawmakers had proposed a compromise to ban yield on stablecoin holdings resembling deposit accounts, but bankers remain unconvinced. The debate's prolongation complicates the bill's passage through the Senate. Bankers warn that without intervention, stablecoin markets could rapidly expand, accelerating the migration of funds out of bank deposits, with larger institutions likely benefiting at the expense of community banks.