The American Bankers Association warns that the Clarity Act could trigger a "deposit migration" of stablecoins

Mars Finance news, according to a report by CoinDesk, the American Bankers Association (ABA) is stepping up its lobbying efforts, urging the Senate to further tighten the stablecoin yield provisions in the Clarity Act for Digital Asset Markets. The ABA says that the current version still allows yield-type stablecoins similar to “interest,” which could replace insured bank deposits, weakening sources of credit such as mortgage loans and business loans. Although the bill has introduced a compromise proposal that bans stablecoin yields similar to deposit interest and only allows activity rewards similar to credit card points, multiple banking industry groups—including the ABA—are still demanding that the so-called “yield loophole” be closed to prevent stablecoin market capitalization from rapidly expanding from about $300 billion to as much as $2 trillion, increasing pressure on the banks’ liabilities side and slowing the progress of broader cryptocurrency legislation.