The US crypto industry's main legislative 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, while the American Bankers Association claims that the report analyzed the wrong scenario. The ABA contends that allowing stablecoin yield could lead to a significant migration of funds out of bank deposits, posing a threat to the banking system.
The conflict has delayed the Senate legislation, with lawmakers struggling to find a compromise. The bankers' arguments suggest that the absence of regulation on stablecoin yield could lead to rapid growth in the stablecoin market, potentially reaching $2 trillion, and accelerate the migration of deposits out of banks.