Bankers rebuff White House claim that stablecoin yield doesn't threaten deposits
CoinDesk·2h ago·Fear
What Happened
The American Bankers Association disputes a White House economic report claiming stablecoin yields pose minimal risk to bank deposits. Bankers argue the analysis examined the wrong scenario and contend that prohibiting stablecoin yield is necessary to prevent deposit migration. The debate has stalled the Digital Asset Market Clarity Act in the Senate for months. A compromise would ban yield on deposit-like stablecoins but allow activity-based rewards. Bankers warn stablecoin markets could grow from $300 million to $2 trillion.
Key Entities
American Bankers AssociationWhite House Council of Economic AdvisersDigital Asset Market Clarity ActU.S. Senate Banking CommitteeSenator Cynthia Lummisstablecoinsbank deposits