Major U.S. banking groups pushed back against a compromise over stablecoin yield provisions in a crypto market structure bill, saying it "falls short of the goal," The Block reported on Sunday.

The American Bankers Association (ABA), the Bank Policy Institute (BPI), the Consumer Bankers Association (CBA), the Financial Services Forum (FSF) and the Independent Community Bankers of America (ICBA) issued a joint statement opposing the compromise drafted by Democratic Senator Angela Alsobrooks (앤절라 앨소브룩스) and Republican Senator Thom Tillis (톰 틸리스).

The compromise would ban any form of interest or yield payments for simply holding stablecoins, but allow activity-based and transaction-based rewards tied to substantive activity.

The banking groups said Tillis and Alsobrooks are pursuing the right policy goal of banning yield and interest payments on stablecoins, but the proposed provision does not meet that goal.

They expressed specific concerns about exchanges offering interest through membership-type programs, or calculating rewards based on holding period, balance and transaction history.

The banking sector has argued over the past year that stablecoin rewards could lead to deposit outflows from traditional banks, particularly regional banks. Crypto companies have countered that limiting rewards would hinder innovation.