Banks are exerting strong pressure on stablecoin yields

The debate over the cryptocurrency market restructuring bill has moved to closed-door sessions. According to Eleanor Terret, banking associations in the United States are coordinating a direct lobbying campaign with Senators regarding stablecoin yields, a provision that banks see as a threat to their deposit base. This issue has become a key focus at banking conferences nationwide, even as the official congressional discussion shifts toward an ethics agreement, decentralized finance provisions, and the merging of the Senate Banking and Agriculture Committee texts. Terret's sources indicate that the yields are still a major topic of debate, with more Senators scrutinizing the bill.
The American Banking Association has intensified its pressure on Senators, warning that provisions related to stablecoin yields could undermine bank deposits and financial stability, as banking trade groups argue that yield-bearing stablecoins could replace insured deposits and drain mortgage and business loan funding. Reports indicate that association members have sent over 8,000 messages to Senate offices criticizing the settlement related to the yield.