The US crypto industry's key legislative effort, the Digital Asset Market Clarity Act, remains stalled due to disagreements over stablecoin yields. Bankers have countered a White House report downplaying the risks, arguing that economists misinterpreted the issue. The American Bankers Association claims 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 been a major point of contention, despite a proposed compromise to ban yield on stablecoin holdings resembling deposit accounts and permit rewards programs for activity.
The debate's prolongation complicates the bill's passage through the Senate, with bankers warning that inaction on stablecoin yield could allow the market to grow rapidly, accelerating the migration of deposits out of banks.