White House and Crypto Industry Clash with Banking Lobby Over Stablecoin Yield

The Trump administration and crypto industry are clashing with the American Bankers Association over whether stablecoin issuers should be allowed to offer yield to investors, a dispute that has stalled the Digital Asset Market Clarity Act for months. The White House Council of Economic Advisers released a report concluding banks have little to fear from stablecoins, but the American Bankers Association contends the analysis examined the wrong scenario and warns that stablecoin markets could scale from $300 million to $2 trillion, draining bank deposits. Lawmakers negotiated a compromise that would ban yield on deposit-like stablecoin accounts while allowing credit-card-style rewards, but banks have not endorsed the deal. Senator Cynthia Lummis, who chairs the Senate Banking Committee's digital assets subcommittee, posted on April 13, 2026 that America needs the legislation, though a committee hearing had not yet been scheduled as of that date.

Banking Industry Opposition to Stablecoin Yield Programs

• ▪The American Bankers Association argues that a prohibition on yield for payment stablecoins is a prudent safeguard
• ▪The American Bankers Association contends that stablecoin yield programs are a danger to bank deposits
• ▪The American Bankers Association contends that in a larger stablecoin market, yield would be the mechanism that would accelerate migration out of bank deposits
• ▪The American Bankers Association argues that without intervention on stablecoin yield, stablecoin markets could scale from roughly $300 billion in 2026 to as much as $2 trillion

White House Economic Analysis Versus ABA Position

• ▪The White House Council of Economic Advisers released a report concluding that banks have little to fear from the rise of stablecoins
• ▪The American Bankers Association contends that the White House Council of Economic Advisers analyzed the wrong scenario in its stablecoin report
• ▪American Bankers Association economists stated that the White House Council of Economic Advisers paper minimizes the core risk by starting from the wrong question
• ▪The American Bankers Association argues the White House Council of Economic Advisers should have analyzed what would happen if stablecoin returns were allowed rather than if Congress instituted a ban on stablecoin yield

Legislative Stalemate Over the Digital Asset Market Clarity Act

• ▪Senator Cynthia Lummis chairs the Senate Banking Committee's digital assets subcommittee
• ▪Lawmaker advocates for the Digital Asset Market Clarity Act predicted the bill could get its necessary hearing in the Senate Banking Committee before the end of April 2026
• ▪The conflict over stablecoin yield effectively derailed the Digital Asset Market Clarity Act Senate legislation for months
• ▪As of April 13, 2026, the Senate Banking Committee hearing for the Digital Asset Market Clarity Act had not yet been scheduled
• ▪The Digital Asset Market Clarity Act is the crypto industry's chief effort in U.S. policy
• ▪The Digital Asset Market Clarity Act has remained held up on a point about stablecoin yield that has little to do with the bill's central aim to regulate U.S. crypto markets

Perspective of American Bankers Association

• ▪The American Bankers Association believes the White House Council of Economic Advisers failed to analyze the actual policy scenario under debate

Perspective of Trump administration and White House

• ▪The White House disputes the American Bankers Association's claims that stablecoin yield threatens bank deposits
• ▪The White House Council of Economic Advisers concluded that banks face minimal risk from stablecoin growth
• ▪The Trump administration backs proposals that would permit stablecoin issuers to offer yield to investors

Perspective of Senator Cynthia Lummis and Digital Asset Market Clarity Act supporters

• ▪Senator Cynthia Lummis publicly advocated on April 13, 2026 that America needs the Digital Asset Market Clarity Act