{"id":72114,"date":"2026-05-06T05:19:22","date_gmt":"2026-05-06T05:19:22","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/banks-reject-stablecoin-yield-compromise-demanding-stricter-crypto-limits\/"},"modified":"2026-05-06T05:19:22","modified_gmt":"2026-05-06T05:19:22","slug":"banks-reject-stablecoin-yield-compromise-demanding-stricter-crypto-limits","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/banks-reject-stablecoin-yield-compromise-demanding-stricter-crypto-limits\/","title":{"rendered":"Banks Reject Stablecoin Yield Compromise, Demanding Stricter Crypto Limits"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p data-path-to-node=\"0\"><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li data-path-to-node=\"1,0,0\">Rejecting the Digital Asset Market Clarity Act over a rule, banks seek to prevent deposit flights.<\/li>\n<li data-path-to-node=\"1,1,0\">Eleanor Terrett notes big banks aren\u2019t 100% aligned, so they will next lobby the Senate over market risks.<\/li>\n<li data-path-to-node=\"1,2,0\">On May 4, the American Bankers Association demanded a fix for a loophole enabling future <span>stablecoin<\/span> yields.<\/li>\n<\/ul>\n<h2>Banks Still Dissatisfied With Clarity Act <span>Stablecoin<\/span> Yield Compromise<\/h2>\n<p>The saga of the Digital Asset Market Clarity Act continues, as banks and <span>crypto<\/span> companies have not reached a compromise on <span>stablecoin<\/span> yields, which banks argue could upset the financial system and affect their business model.<\/p>\n<p>Even after it was reported that Senators Thom Tillis and Angela Alsobrooks had reached an agreement on the language defining <span>stablecoin<\/span> yields, reports indicate that banks are still not entirely in agreement with it.<\/p>\n<p><\/p>\n<p>According to <span>crypto<\/span> journalist Eleanor Terrett, a <a href=\"https:\/\/x.com\/EleanorTerrett\/status\/2051743401557590088?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">divide<\/a> is forming among banks, with big banks serving customers still not being fully 100% with the draft as redacted. Other financial institutions, including some community banks, would support the current wording, though.<\/p>\n<p>Terret states that the issue is connected to the narrow language dealing with <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoin<\/a> rewards, which <strong>\u201cstill leaves room for <span>crypto<\/span> firms to work around the restriction.\u201d<\/strong><\/p>\n<p>On social media, she declared that, in their view, <strong>\u201cit\u2019s not a true compromise because it doesn\u2019t eliminate yield completely, it just changes how it\u2019s offered.\u201d <\/strong>Terrett added that banks might take this to other Senate Banking Committee members before markup.<\/p>\n<p>In a joint <a href=\"https:\/\/bpi.com\/banking-trades-statement-on-crypto-market-structure-yield-language\/\" target=\"_blank\" rel=\"noopener noreferrer\">statement<\/a> issued on May 4, the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America stressed that the proposed language \u201cfalls short\u201d of \u201cprohibiting the payment of yield and interest on <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoins<\/a>.\u201d<\/p>\n<p>The statement indicates that the language allows rewards to be calculated by reference to duration, balance, and tenure, which could incentivize idle holding of <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoins<\/a> for extended periods, negating the ultimate objective of avoiding deposit flight.<\/p>\n<p><strong>\u201cThis is a significant loophole that must be addressed,\u201d<\/strong> the banks concluded.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/banks-reject-stablecoin-yield-compromise-demanding-stricter-crypto-limits\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways: Rejecting the Digital Asset Market Clarity Act over a rule, banks seek to prevent deposit flights. Eleanor Terrett notes big banks aren\u2019t 100% aligned, so they will next lobby the Senate over market risks. On May 4, the American Bankers Association demanded a fix for a [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":72115,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72114"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=72114"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72114\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/72115"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=72114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=72114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=72114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}