In response to a recent White House report that downplayed the risks of stablecoin yields to bank deposits, the American Bankers Association (ABA) has issued a strong rebuttal. The ABA argues that the report mischaracterizes the issue by not considering the implications of allowing stablecoin yields. They assert that if stablecoin yields are permitted, it could lead to significant outflows from bank deposits, undermining the banking system's stability. This debate is a critical point in the ongoing negotiations surrounding the Digital Asset Market Clarity Act, which aims to regulate the U.S. crypto market. While a compromise has been proposed to ban yields on stablecoins that function like deposit accounts, the banking sector remains cautious. Senator Cynthia Lummis, a key advocate for the Clarity Act, has called for immediate action, warning that delays could hinder the bill's progress in the Senate. The ABA estimates that without intervention, stablecoin markets could expand dramatically, potentially reaching $2 trillion, further exacerbating the risk to traditional banking deposits.