The US crypto industry's efforts to pass the Digital Asset Market Clarity Act have stalled due to disagreements over stablecoin yields. Bankers argue that these yields could lure depositors away from traditional banks, contradicting a recent White House report that downplayed the risk. The American Bankers Association claims that the White House economists misunderstood the issue, and that allowing stablecoin yields could lead to a massive migration of funds out of bank deposits. This debate has delayed the Senate's consideration of the Clarity Act, which aims to regulate the US crypto market.
Lawmakers had proposed a compromise that would ban yield on stablecoin holdings resembling deposit accounts, but banks remain unsatisfied. As the debate continues, the chances of passing the Clarity Act diminish.
The bankers warn that without intervention, the stablecoin market could grow exponentially, from $300 million to $2 trillion, and that yield would become a key driver of this growth, further threatening bank deposits.