Stablecoin yield dispute stalls US crypto bill as Senate delays
The Senate delay on the Digital Asset Market Clarity Act is worsening after US banking groups pushed back on the idea of stablecoin yield. The American Bankers Association (ABA) argues a White House-linked economic analysis underestimates how reward-like features could pull funds from traditional bank deposits.
ABA estimates stablecoins could grow from about $300 billion to as much as $2 trillion if stablecoin yield remains available. Banking groups warn this could pressure bank liquidity and lending, and they want stablecoins framed primarily as payments rather than savings.
In Senate Banking Committee talks, negotiations have stalled over whether stablecoin yield should be restricted. A potential compromise would bar rewards that directly resemble deposit interest, while allowing limited activity-linked incentives (for example, spending-related perks). However, banks have not fully endorsed the direction, and no hearing or vote has been scheduled.
Sen. Cynthia Lummis urged lawmakers to act, warning the reform window could slip. For crypto traders, the renewed stablecoin yield uncertainty raises regulatory headline risk and may keep risk appetite cautious until the bill’s timeline and language become clearer.
Neutral
This is not a direct crypto-asset fundamentals change, but it increases regulatory headline risk. The core issue is whether stablecoin yield is treated like deposit interest—banks fear deposit outflows that could tighten liquidity and lending. While a compromise concept exists (limit interest-like rewards but allow activity-linked perks), there is no scheduled hearing or vote, keeping uncertainty elevated.
Short-term, traders may stay cautious due to the risk of shifting legislative language and sudden compliance headlines. Long-term, the bill still signals movement toward clearer rules, but the stablecoin yield fight could delay broader market clarity and cap speculative risk-taking until timelines firm up.