Bank trade groups say Senate stablecoin reward fix ‘falls short’ amid deposit protection concerns
The Block
Major banking trade groups argue a new Senate stablecoin compromise fails to adequately prevent yield-based deposit flight from traditional banks.Summary
Major U.S. banking trade associations have criticized a recent legislative compromise between Senators Angela Alsobrooks and Thom Tillis regarding stablecoin interest payments. While the proposal aims to prohibit interest on stablecoins, the banking groups argue the language is insufficient, fearing that permissible rewards could still lead to deposit flight from traditional banks. They specifically object to provisions allowing rewards based on holding duration and balance, pledging to work with lawmakers to further strengthen protections.
(Source：The Block)