Banking Groups Intensify Lobbying Against Stablecoin Provisions in Senate Bill
- The American Bankers Association (ABA) is lobbying against the Senate’s Digital Asset Market Clarity Act, citing concerns over stablecoin provisions.
- The ABA warns that yield-bearing stablecoins could undermine bank deposits and financial stability, potentially increasing the market from $300 billion to $2 trillion.
- Senator Bernie Moreno criticized the banking sector’s response, suggesting they are trying to limit competition from digital dollar products.
- The Senate Banking Committee is set to vote on the updated bill this Thursday, following a release of new legislative text expected on Monday.
- The ongoing debate has delayed legislative progress, with about ten weeks remaining before midterm elections complicating further negotiations.
As the ABA rallies banks to push for stricter regulations on payment stablecoins, they emphasize potential risks to traditional banking systems and funding for loans. The dispute highlights a significant conflict in Washington regarding crypto policy and financial stability.
With estimates suggesting a possible market expansion for yield-bearing stablecoins up to $2 trillion, banking groups continue to advocate for tighter controls ahead of the Senate vote this Thursday.
