Banking groups escalate fight over stablecoin yield ahead of Senate vote
CoinDesk
The American Bankers Association is lobbying for tighter restrictions on stablecoin interest yields to prevent potential bank deposit flight ahead of a Senate vote.Summary
The American Bankers Association (ABA) is intensifying its lobbying efforts against the Senate’s Digital Asset Market Clarity Act, arguing that current provisions could allow stablecoins to offer interest-like rewards that compete with traditional bank deposits. Concerned that such yields could drain essential funding for mortgages and business loans, the ABA is urging lawmakers to tighten regulations before the Senate Banking Committee’s scheduled vote. While crypto industry supporters contend that stablecoins provide valuable payment innovations, banking groups maintain that without stricter guardrails, the growth of yield-bearing stablecoins poses a significant threat to financial stability.
(Source：CoinDesk)