The US crypto industry's main legislative push, the Digital Asset Market Clarity Act, remains stalled due to disagreements over stablecoin yields. Bankers have reignited the debate, arguing that reward programs for stablecoins pose a risk to bank deposits. In response to a White House report downplaying the risks, the American Bankers Association asserts that the economists misinterpreted the scenario. The ABA claims that allowing stablecoin yields could lead to a significant migration of funds out of bank deposits, undermining the banking system.
The conflict has delayed the Senate legislation, with lawmakers predicting a possible hearing this month. However, the banking industry's concerns have yet to be fully addressed, and the longer the debate continues, the more challenging it will be to pass the Clarity Act.
The bankers warn that failing to intervene in stablecoin yields could result in rapid market growth, from $300 million to $2 trillion, further exacerbating the risks to bank deposits.