• Stablecoin rules stall in Congress as banks debate adoption while market growth continues despite policy delays.
• Banks fear deposit losses from stablecoin yield limits as lawmakers push custody and payment use cases nationwide.
• Crypto firms withdraw support as stablecoin yield bans delay a unified US market structure bill in Congress today.

U.S. Senator Cynthia Lummis encouraged banks to implement stablecoins and digital assets as regulatory discussions continue to halt. The driving force behind her is the debate by lawmakers over crypto market structure regulations. 

🇺🇸LUMMIS: BANKS SHOULD EMBRACE STABLECOINS

Senator Lummis says banks should embrace, not resist, stablecoins and digital assets.

She argues this unlocks entirely new financial products for banks, from digital asset custody to stablecoins as faster, cheaper payment rails. pic.twitter.com/XmndsuhRgo

— Coin Bureau (@coinbureau) February 6, 2026

Stablecoins now sit at the center of the dispute. Banking groups and crypto firms remain divided. Meanwhile, the dollar stablecoin market continues expanding.

Banks Face Strategic Choice on Stablecoins

Lummis chairs the Senate Subcommittee on Digital Assets. She views stablecoins as a new financial product for banks. She believes banks can expand services through custody and payments. Faster settlements could lower transaction costs. As a result, banks could strengthen customer relationships.

However, the banking sector remains cautious. Many institutions fear deposit losses. Community banks raise the strongest objections. They rely on stable deposits to fund lending. Therefore, they view stablecoin rewards as a direct risk.

Yield Restrictions Become Central Roadblock

Stablecoin yield rules dominate legislative negotiations. The Senate Banking Committee draft restricts interest on idle stablecoin balances. Banking groups support these limits. They argue that products yield mirror deposits without safeguards. Consequently, they seek to protect credit availability.

Crypto firms oppose the restrictions. Several companies withdrew support after the yield language appeared. Coinbase stands among the most notable opponents. This withdrawal slowed progress on the bill. As a result, lawmakers face extended delays.

Committees Struggle to Align on Final Bill

The Senate Agriculture Committee also shapes the legislation. Its leadership describes stablecoin rewards as a major sticking point. Both committees must reconcile their drafts. That step remains unresolved. Even agreement on yield rules may not secure passage.

Industry lobbying has intensified. The American Bankers Association prioritizes stablecoin oversight. It warns deposit losses could reduce loans and mortgages. Lawmakers from smaller communities echo these concerns. Therefore, political pressure continues building.

Market Growth Outpaces Policy Progress

Despite delays, the stablecoin market keeps growing. Total market capitalization has reached $290 billion. Payment and settlement use cases drive adoption. Domestic and international demand both contribute. This growth continues without clear legislation.

Treasury officials project further expansion with supportive laws. Estimates suggest the market could exceed $2 trillion by 2028. However, uncertainty clouds that outlook. The CLARITY Act remains stalled over stablecoin roles. Without clear rules, banks may delay adoption while markets move ahead.