Banking Lobby Opposes Latest Version of the CLARITY Act

A group of financial and insurance organizations, including the American Bankers Association, has opposed the current version of the CLARITY Act.

The bill was previously introduced by Senators Thom Tillis and Angela Alsobrooks.

Key Demand: Full Ban on Stablecoin Yield

The banking lobby is pushing for a complete ban on any form of stablecoin yield, including:

• interest-like payments for holding stablecoins;
• rewards tied to membership or loyalty programs.

The current version of the bill:

• prohibits yield for passive holding;
• allows rewards tied to active participation.

However, banks argue this is insufficient.

“It is critical that Congress gets this right. Research shows yield-bearing stablecoins could reduce consumer, small business, and agricultural lending by one-fifth or more, making a clear and comprehensive ban essential.”

Main Concerns

According to the statement, the current draft:

• “encourages passive holding of stablecoins”;
• contains loopholes, including rewards distributed via exchange membership programs.

Banks argue this could undermine the traditional financial system.

Potential Impact

Senate hearings on the CLARITY Act were expected in mid-May 2026, but opposition from the banking sector may delay or complicate the process.

At the same time, experts stress that the bill must be passed before the midterm elections in fall 2026, or it risks being postponed indefinitely.

See also: "Barclays Analysts Update Fed Rate Outlook and Present 2026 Expectations"

#Bank #CLARITY Act #Crypto Regulations

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