The Digital Chamber, a number one cryptocurrency advocacy group, has urged the US Congress to protect yield-generating capabilities for fee stablecoins.
In its newest proposal, the group argued that present legislative drafts within the CLARITY Act threaten to outlaw the basic mechanics of DeFi.
Sponsored
Digital Chamber Urges Congress to Protect Stablecoin Yields
The group particularly petitioned lawmakers to retain the exemptions in Part 404 of the proposed CLARITY Act.
These provisions distinguish between conventional “interest,” which banks pay on insured deposits, and different rates of interest. They successfully separate this earnings from “rewards” derived from liquidity provision (LP) actions on decentralized exchanges.
At this time, The Digital Chamber is releasing ideas to assist illuminate the trail ahead on the stablecoin yield debate in order that the U.S. can transfer ahead in advancing a sturdy market construction invoice and lead the world in crypto.
These ideas push to protect stablecoins as… pic.twitter.com/CKMgT9k7Xv
— The Digital Chamber (@DigitalChamber) February 13, 2026
The Chamber warned that eradicating these exemptions wouldn’t solely stifle home innovation but additionally “undermine dollar dominance.”
The group posits that if US-regulated stablecoins are legally barred from taking part in DeFi markets, world capital will inevitably circulate to foreign-issued digital property or unregulated offshore entities.
Sponsored
This shift, they argue, would successfully cut back demand for the US greenback within the digital financial system.
Moreover, the advocacy group careworn {that a} whole ban on yields would power customers into passive holding methods.
Based on them, this might, sarcastically, improve monetary publicity to “impermanent loss.” This can be a threat related to asset volatility in liquidity swimming pools.
Sponsored
Digital Chamber Provides Regulatory Concessions
Notably, the banking foyer contends that permitting stablecoins to supply yield with out complying with banking capital necessities creates a harmful arbitrage alternative.
They argue that this regulatory hole threatens to destabilize the complete monetary system. Additionally they claimed that high-yield stablecoins would siphon liquidity away from group banks.
As a proposed compromise, the Chamber urged mandating clear client disclosures to make clear that stablecoin yields are usually not corresponding to financial institution rates of interest and are usually not FDIC-insured.
Sponsored
Moreover, they advisable that regulators conduct a federal “Deposit Impact” examine two years after the invoice turns into regulation.
The group argues that this empirical knowledge will show that stablecoins complement, quite than disrupt, the normal banking sector.
The suggestions arrive as negotiations on a complete market-structure invoice (CLARITY Act) attain a important deadlock.
A high-stakes assembly on the White Home earlier this week between banking representatives and cryptocurrency executives reportedly led to impasse.
Wall Avenue lobbyists stay staunchly against any measure that may permit non-bank stablecoin issuers to go yields to clients, viewing such merchandise as a direct menace to the normal depository mannequin.
