American Banking Association warns ClarityAct may stimulate stablecoins to "move deposits"

According to CoinDesk, the American Banking Association (ABA) is stepping up its lobbying efforts to ask the Senate to further tighten stablecoin earnings provisions in the Digital Asset Markets Clarity Act. The ABA said the current version still allows income-based stablecoins similar to "interest", which could replace protected bank deposits and weaken sources of credit funds such as mortgages and corporate loans. Although the bill has introduced a compromise plan to ban stablecoin gains similar to deposit interest and only allow activity rewards similar to credit card points, many banking groups, including the ABA, still call for the so-called "revenue loopholes" to be closed to prevent the market value of stablecoin from expanding rapidly from about US$300 billion to as much as US$2 trillion, increasing pressure on bank debt and slowing down the broader crypto legislation process.