U.S. Lawmakers Revisit Concerns Over Stablecoin Yields Amid Bank Deposit Risks

ChainCatcher report: U.S. lawmakers recently revisited discussions on the yield mechanisms of stablecoins, with some legislators expressing concerns that yields offered by stablecoins could lead to outflows from bank deposits and blur the lines between crypto products and traditional bank deposits. During a hearing before the Senate Banking Committee, Senator Angela Alsobrooks stated that while she supports financial innovation, stablecoin yield mechanisms may create products similar to bank deposits without the corresponding regulatory oversight and consumer protections, potentially posing future risks of deposit flight. The issue of stablecoin yields has been one of the central topics in cryptocurrency legislation negotiations. The 2025 GENIUS Stablecoin Act prohibits stablecoin issuers from directly paying interest to holders, but does not prevent third-party platforms like Coinbase from offering token-holding rewards to users. Banking industry representatives argue that allowing stablecoins to generate yields would undermine the deposit base of the traditional banking system. A prior study by the Independent Community Bankers of America found that if stablecoin yield mechanisms were fully opened, bank deposits could decline by approximately $1.3 trillion, leading to a reduction in community bank lending by about $850 billion. The crypto industry counters that restricting stablecoin yields would stifle innovation. Some industry insiders note there is currently no clear evidence linking the adoption of stablecoins to significant deposit outflows from banks. Senator Thom Tillis stated he will request regulatory agencies to conduct an independent assessment of the potential deposit flight risks posed by stablecoins. Meanwhile, the White House has recently convened multiple rounds of meetings between banks and crypto firms and aims to reach a resolution on the issue of stablecoin yields by the end of this month.