Overview
- - The American Bankers Association released new modeling that rebuts a White House study by arguing policymakers should weigh the risks of allowing yield rather than the effect of banning it.
- - In Iowa projections, the ABA estimates $5.3–$10.6 billion moving into stablecoins could cut state lending by $4.4–$8.7 billion as banks replace lost deposits with costly borrowing.
- - The Council of Economic Advisers previously found a ban on stablecoin interest would lift total U.S. loans by about $2.1 billion, with an annual consumer welfare loss near $800 million.
- - The fight is shaping U.S. bills on dollar‑pegged payment stablecoins, with a working compromise to bar interest on deposit‑like balances while permitting activity rewards, and the Senate hearing for the Clarity Act still unscheduled.
- - Bankers also warn large issuers would park reserves at big banks rather than community lenders, which could raise local borrowing costs for households and small businesses if deposits leave smaller towns.