The US crypto industry's efforts to pass the Digital Asset Market Clarity Act have been hindered by disagreements over stablecoin yields. Bankers argue that the rewards programs offered by stablecoins pose a risk to bank deposits, contradicting a recent report by White House economists. The American Bankers Association claims that the report analyzed the wrong scenario, and that allowing stablecoin yields could lead to a significant migration of funds out of bank deposits. The conflict has stalled the Senate legislation, with lawmakers struggling to find a compromise.
The bankers' latest arguments suggest that the absence of regulation on stablecoin yields could lead to rapid growth in the stablecoin market, from $300 million to $2 trillion, and accelerate the migration of funds out of bank deposits.