The US crypto industry's efforts to advance the Digital Asset Market Clarity Act have been hindered by a dispute over stablecoin yields, which bankers claim poses a threat to bank deposits. In response to a White House report downplaying the risks, the American Bankers Association argues that the economists' analysis is based on the wrong premise. The ABA contends that allowing stablecoin yields could lead to a mass exodus of depositors from traditional banks, seeking higher returns from stablecoins. This could result in a significant shift of funds from banks to stablecoin markets, potentially reaching $2 trillion.
The bankers' concerns have stalled the Senate legislation, with lawmakers struggling to find a compromise that addresses the issue. The conflict has sparked a heated debate, with some lawmakers, such as Senator Cynthia Lummis, urging the need for clarity and action on the bill.