The US crypto industry's primary legislative push, the Digital Asset Market Clarity Act, remains stalled due to disagreements over stablecoin yield. The American Bankers Association has responded to a White House economists' report, arguing that it misinterprets the risks associated with stablecoin rewards programs. The ABA claims that allowing stablecoin yields could lead to a significant migration of funds out of bank deposits, posing a threat to the banking system.
This debate has been ongoing, with lawmakers attempting to find a compromise that addresses the concerns of both the banking and crypto industries. The longer the discussion continues, the more challenging it becomes to pass the Clarity Act through the Senate.
The bankers warn that without intervention, the stablecoin market could rapidly expand, leading to a substantial shift of deposits away from traditional banks.