Stablecoins supply stands near US$316B, having grown by about one-third over the past year. Jefferies estimates that stablecoin adoption could drive a 3-5% runoff in core deposits over five years, reducing average bank earnings by approximately 3%. A bipartisan agreement on the CLARITY Act’s yield provisions emerged, drawing a distinction between passive and active yield. The draft would restrict earning yield simply for holding a balance, with a twelve-month post-enactment window for regulators to define the line.
This framework could alter the economics of stablecoin funding and influence how banks fund themselves in a market that has seen rapid growth. As policymakers weigh these provisions, the sector remains under regulatory scrutiny, with potential broader implications for regulated deposits and funding channels tied to digital assets.
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