The US crypto industry's push for regulatory clarity, embodied in the Digital Asset Market Clarity Act, remains stalled due to disagreements over stablecoin yields. Bankers have countered a White House report downplaying the risks, asserting that the rewards programs pose a significant threat to bank deposits. The American Bankers Association claims the White House economists analyzed the wrong scenario, focusing on a ban on stablecoin yields rather than the consequences of allowing such yields.
The ABA argues that prohibiting yield on payment stablecoins is essential to prevent them from becoming a risky substitute for insured bank deposits. This dispute has hindered the Senate legislation, with lawmakers attempting to find a compromise that addresses the bankers' concerns. The proposed Clarity Act aims to regulate US crypto markets, but its progress is uncertain. The bankers warn that failing to intervene in stablecoin yields could lead to a rapid scaling of stablecoin markets, accelerating the migration of funds out of bank deposits.