US lawmakers are revisiting the issue of stablecoin rewards as concerns resurface that offering yields could pull deposits away from traditional banks. > At a Senate hearing, Sen. Angela Alsobrooks warned that stablecoin yields could mimic bank deposits without the same safeguards, increasing deposit flight risks. > Sen. Thom Tillis said he will seek an independent regulatory review before proceeding. > The debate ties back to the GENIUS Act, which prohibits stablecoin issuers from paying direct interest but allows third party platforms to offer rewards. > Community banks argue that allowing yields could significantly reduce deposits and lending capacity. > Crypto firms dispute those claims, saying there is no clear evidence linking stablecoin adoption to deposit flight.