Senate lawmakers debate whether stablecoin issuers and exchanges can pay interest‑like rewards, a move that could reshape the growing $3 trillion U.S. dollar‑stablecoin market projected for 2030. Treasury Secretary Scott Bessent warns that the industry’s expansion may touch the $18 trillion bank‑deposit base.

Regulators last year barred stablecoin issuers from offering direct yields, yet exchanges can still provide indirect rewards. The proposed Clarity Act would clarify who may pay and under what conditions. Bankers fear a shift could erode deposit volumes and curb credit supply.

A Council of Economic Advisers study suggests a yield ban would lift bank lending by only $2.1 billion—0.02% of loans—because deposits would likely recycle through the system. In practice, however, banks might sell Treasury bonds to meet outflows, driving total deposits lower.

Even if stablecoins gain traction, their competitive edge lies in programmability, not yield. Without transactional convenience, U.S. users lack incentive to move balances out of traditional accounts, keeping the threat largely theoretical.