U.S. lawmakers re-examine the issue of stablecoin yields, focusing on the risk of bank deposit outflows

U.S. lawmakers have recently resumed discussions on the yield mechanisms of stablecoins, with some legislators expressing concerns that the yields offered by stablecoins could lead to a drain on bank deposits and blur the lines between crypto products and traditional bank deposits.

During a Senate Banking Committee hearing, Senator Angela Alsobrooks stated that while she supports financial innovation, the yield mechanisms of stablecoins could create products similar to bank deposits but lack corresponding regulatory and protective measures, potentially leading to future deposit outflow risks. The issue of stablecoin yields has been one of the core topics in legislative negotiations within the crypto market. The stablecoin bill GENIUS, passed in 2025, has prohibited stablecoin issuers from directly paying interest to holders, but it has not banned third-party platforms like Coinbase from offering rewards to users for holding coins.

Banking professionals believe that allowing stablecoins to offer yields would undermine the deposit base of the traditional banking system. A previous study by the Independent Community Bankers of America indicated 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 loans. The crypto industry, however, argues that restricting stablecoin yields would stifle innovation. Some industry insiders have stated that there is currently no evidence to suggest a significant correlation between the proliferation of stablecoins and the outflow of bank deposits.

Senator Thom Tillis has indicated that he will request regulators to conduct an independent assessment of the risks of deposit outflow that stablecoins may trigger. Meanwhile, the White House has recently organized multiple rounds of meetings between banks and crypto companies, hoping to reach a solution on the issue of stablecoin yields by the end of this month.