The US crypto industry's efforts to pass the Digital Asset Market Clarity Act have been stalled due to disagreements over stablecoin yields. Bankers argue that the White House economists' report underestimated the risks of stablecoin yields to bank deposits.
The American Bankers Association claims that the report analyzed the wrong scenario and that allowing stablecoin yields could lead to a significant migration of funds out of bank deposits. The association argues that a ban on stablecoin yields is necessary to prevent this risk. The debate has delayed the passage of the Clarity Act, which aims to regulate the US crypto market.
The longer the debate continues, the more challenging it will be to pass the bill. The bankers' arguments suggest that the absence of intervention on stablecoin yields could lead to a rapid growth of the stablecoin market, from $300 million to $2 trillion, and accelerate the migration of funds out of bank deposits.