American Bankers Association urges banks to oppose stablecoin yield loophole in Digital Asset Market Clarity Act ahead of Senate markup
The American Bankers Association is lobbying against a proposed stablecoin provision that could allow interest-bearing stablecoins, threatening traditional bank deposits.Summary
The American Bankers Association (ABA) has mobilized member banks to oppose a "stablecoin yield loophole" within the Digital Asset Market Clarity Act. Scheduled for Senate markup on May 14, the provision would allow stablecoin issuers to provide interest-like returns. The ABA warns that this could trigger a massive exodus of up to $6.6 trillion from traditional bank deposits and reduce consumer lending. While banking leaders argue this is a matter of consumer protection and regulatory parity, proponents like Coinbase CEO Brian Armstrong claim these fears are exaggerated. The outcome of the upcoming Senate markup will determine whether stablecoins can legally function as competing savings vehicles or remain restricted to exchange and payment utilities.
(Source：Crypto Briefing)