US banks seek stablecoin yield limits ahead of CLARITY Act vote
- —Eight US banking groups ask the Senate to limit stablecoin rewards
- —Banks see a risk of mass deposit outflows and higher borrowing costs
- —Crypto industry: yield reflects income from reserve Treasuries
- —Restrictions could push development to other jurisdictions
Why it matters: The outcome of the dispute will determine whether stablecoins can compete with bank deposits and how the market will be structured after the CLARITY Act.
Source: Bit2Me News