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, focusing on the wrong scenario.
The American Bankers Association claims that allowing stablecoin yield could lead to a significant migration of funds out of bank deposits, threatening the banking system. The conflict has delayed Senate legislation, with lawmakers struggling to find a compromise between regulating stablecoins and protecting bank deposits. The banking sector warns that the absence of intervention could lead to rapid growth in stablecoin markets, from $300 million to $2 trillion, accelerating the migration of funds out of bank deposits.