The US crypto industry's key legislative proposal, the Digital Asset Market Clarity Act, has stalled due to disagreements over stablecoin yields. Bankers have pushed back against a White House report downplaying the risks, arguing that the economists misunderstood the issue.
The American Bankers Association claims that allowing stablecoin yields could lead to a significant migration of deposits out of traditional banks, posing a threat to the stability of the banking system. This debate has delayed the Senate's consideration of the Clarity Act, which aims to regulate the US crypto market. While lawmakers have proposed a compromise to restrict stablecoin yields, the banking industry remains unsatisfied. The ongoing dispute may hinder the bill's progress, with crypto insiders and lawmakers calling for urgent action to pass the legislation.