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Banks renew pushback on stablecoin yield in Clarity Act fight
CoinDesk says banking lobbyists helped derail the Senate Digital Asset Market Clarity Act after earlier bipartisan compromise, as the bill’s stablecoin-yield provisions drew renewed scrutiny.
CoinDesk reports that banks and crypto firms are once again clashing over whether stablecoin platforms should be allowed to pay rewards, with banking lobbyists arguing that higher stablecoin yield could pull depositors away from banks and threaten the banking system’s traditional deposit model.
According to CoinDesk, crypto lobbyists dispute the banks’ core claim, citing an analysis that the interest banks offer depositors is far lower than before and that banks have not yet lost depositors, while the lending banks point to is becoming a smaller share of their profits.
The article says the stablecoin-yield debate contributed to derailing the Senate Digital Asset Market Clarity Act, despite a high-profile bipartisan compromise earlier in the year.
CoinDesk adds that the bill still faces a key vote period, with the Clarity Act scheduled for its final three weeks of Senate action next month before the midterm elections, leaving the fate of stablecoin yield unresolved.