The US crypto industry's efforts to advance policy, particularly the Digital Asset Market Clarity Act, have been hindered by disagreements over stablecoin yields. Bankers have countered a White House report that downplayed the risks of stablecoin yields to bank deposits, arguing that the analysis was flawed. The American Bankers Association asserts that allowing stablecoin yields could lead to a significant migration of funds out of traditional bank deposits, posing a threat to the banking system. This concern has stalled the progress of the Clarity Act, which aims to regulate the US crypto market.
Lawmakers had proposed a compromise to ban yields on stablecoin holdings that resemble deposit accounts, but bankers remain unsatisfied. The debate's prolongation complicates the bill's passage through the Senate. The bankers warn that inaction on stablecoin yields could enable the stablecoin market to grow rapidly, from $300 million to $2 trillion, accelerating the migration of funds out of bank deposits.