U.S. Lawmakers Reexamine Stablecoin Yield Issue, Focus on Bank Deposit Outflow Risks

Odaily News U.S. lawmakers have recently reignited discussions on stablecoin yield mechanisms, with some legislators concerned that yields offered by stablecoins could lead to bank deposit outflows and blur the lines between crypto products and traditional bank deposits.

During a Senate Banking Committee hearing, Senator Angela Alsobrooks stated that while supporting financial innovation, stablecoin yield mechanisms could create products similar to bank deposits but lack corresponding regulatory oversight and protective measures, potentially triggering future deposit flight risks.

The stablecoin yield issue has been a core topic in crypto market legislative negotiations. The GENIUS stablecoin bill passed in 2025 already prohibits stablecoin issuers from directly paying interest to holders but does not forbid third-party platforms like Coinbase from offering rewards to users for holding coins.

Banking industry representatives argue that allowing stablecoins to offer yields would weaken the deposit base of the traditional banking system. A previous study by the Independent Community Bankers of America suggested that if stablecoin yield mechanisms were fully opened, bank deposits could decrease by approximately $1.3 trillion, leading to a reduction of about $850 billion in community bank lending.

The crypto industry counters that restricting stablecoin yields would stifle innovation. Some industry insiders noted that there is currently no evidence indicating a significant correlation between stablecoin adoption and bank deposit outflows.

Senator Thom Tillis stated that he would request regulatory agencies to conduct an independent assessment of the potential deposit outflow risks posed by stablecoins. Meanwhile, the White House has recently organized multiple rounds of meetings between banks and crypto companies and hopes to reach a solution on the stablecoin yield issue by the end of this month.