U.S. lawmakers are revisiting concerns over stablecoin yield mechanisms, fearing they could lead to significant outflows from traditional bank deposits. During a Senate Banking Committee hearing, Senator Angela Alsobrooks highlighted the potential risks of stablecoin yields creating bank-like products without adequate regulatory oversight. The 2025 GENIUS Stablecoin Act prohibits issuers from paying interest directly, but third-party platforms can still offer rewards. Banking representatives warn that stablecoin yields could undermine the traditional banking system, with a study suggesting potential deposit declines of $1.3 trillion. The crypto industry argues that such restrictions would hinder innovation, noting a lack of evidence linking stablecoins to major deposit outflows. Senator Thom Tillis has called for an independent assessment of these risks, while the White House seeks a resolution by month's end.