Bankers rebuff White House claim that stablecoin yield doesn't threaten deposits

The American Bankers Association (ABA) has issued a study contradicting a recent White House Council of Economic Advisers report, which suggested stablecoins pose little risk to traditional banks. The ABA argues that the CEA analyzed the wrong scenario by failing to consider the impact of permitting, rather than banning, stablecoin yields. Bankers warn that if stablecoin markets scale to trillions of dollars, high yields will incentivize customers to migrate deposits away from traditional institutions, particularly impacting smaller community banks. This ongoing dispute continues to stall the Digital Asset Market Clarity Act in the U.S. Senate, as lawmakers struggle to find a compromise on yield regulations that satisfies both the crypto industry and traditional banking interests.

(Source：CoinDesk)