The US crypto industry's main policy effort, the Digital Asset Market Clarity Act, has been stalled due to disagreements over stablecoin yields. Bankers argue that these yields could lure depositors away from traditional banks, while the White House claims that the risk is minimal. The American Bankers Association has released a study that counters the White House's claims, stating that the economists analyzed the wrong scenario and that allowing stablecoin yields could lead to a significant migration of deposits out of banks. The conflict has delayed the Senate legislation, with lawmakers attempting to find a compromise that would ban yield on stablecoin holdings that resemble deposit accounts.
The longer the debate continues, the more challenging it will be to pass the Clarity Act, which aims to regulate the US crypto market.