The US crypto industry's efforts to pass the Digital Asset Market Clarity Act have been hindered by disagreements over stablecoin yields, which bankers claim could lure depositors away from traditional banks. In a response to a White House report downplaying the risks, the American Bankers Association argued that the economists' analysis was flawed, as it considered the wrong scenario.
The ABA believes that allowing stablecoin yields could lead to a significant shift of deposits away from banks, particularly community banks, and into stablecoin markets, which could scale up to $2 trillion. The conflict has stalled the Senate legislation, with lawmakers struggling to find a compromise that addresses the concerns of both the banking and crypto industries. The lack of progress has led to calls for urgent action, with Senator Cynthia Lummis emphasizing the need for clarity on the issue.