The US crypto industry's push for the Digital Asset Market Clarity Act has been stalled due to disagreements over stablecoin yields, which bankers claim pose a risk to their deposits. In response to a White House report downplaying these risks, the American Bankers Association argues that the analysis was flawed, focusing on the wrong scenario. The ABA economists believe that allowing stablecoin yields could lead to a significant migration of funds out of bank deposits, particularly from community banks, and into stablecoin markets, which could scale up to $2 trillion.
This debate has hindered the progress of the Clarity Act, with lawmakers attempting to find a compromise that would ban yield on stablecoin holdings resembling deposit accounts and only permit rewards programs for activity. However, bankers remain unconvinced, and the lack of resolution may jeopardize the bill's chances of passing through the Senate.