Key Takeaways:
Rejecting the Digital Asset Market Clarity Act over a rule, banks seek to prevent deposit flights. Eleanor Terrett notes big banks aren’t 100% aligned, so they will next lobby the Senate over market risks. On May 4, the American Bankers Association demanded a fix for a loophole enabling future stablecoin yields. Banks Still Dissatisfied With Clarity Act Stablecoin Yield CompromiseOn social media, she declared that, in their view, “it’s not a true compromise because it doesn’t eliminate yield completely, it just changes how it’s offered.” Terrett added that banks might take this to other Senate Banking Committee members before markup.
“This is a significant loophole that must be addressed,” the banks concluded.
