TD Cowen: Banks may lose the battle over stablecoin yields, but the stalemate could jeopardize crypto legislation.

CoinFeed reported on March 4th that, according to The Block, TD Cowen's analysis suggests that banks may ultimately lose the battle over stablecoin yields because opposing consumers receiving yields is politically unsustainable. However, if this dispute drags on too long, it could jeopardize the passage of the US crypto market structure bill, the CLARITY Act. Last week, the OCC released a proposal for the implementation of the GENIUS Act, including a statutory injunction prohibiting issuers from directly paying stablecoin yields and establishing a "repudiable presumption": if an issuer coordinates with an affiliate to have the latter pay yields to holders, such third-party yield arrangements may be illegal. TD Cowen believes that unless platforms are explicitly prohibited from paying yields, the OCC's approach will be unlikely to satisfy banks.