Bank lobbying groups renew objections to stablecoin yield compromise in Clarity Act

A dispute over whether stablecoin users should be allowed to receive rewards has resurfaced, adding uncertainty to a compromise tied to the Clarity Act. The crypto industry had previously viewed the issue as settled, but bank lobbying groups have pushed back again, reopening the debate. Banks argue that if stablecoins offer yields that compete with interest paid on deposit accounts, depositors could shift funds away from the banking system and into stablecoins. Crypto lobbyists, however, say that argument has clear flaws. They point to the current rate environment, noting that bank deposit rates are already lower than in the past, yet there has not been a large-scale flight of depositors. They also argue that the lending business banks often emphasize now makes up a shrinking share of their highly profitable operating model. According to CoinDesk, those competing views have left the related compromise under the Clarity Act facing fresh uncertainty.