ABA, state banking groups push back on CLARITY Act stablecoin yield provisions
Major US banking groups, led by the ABA and ICBA with 76 state associations, are urging Senate leaders to amend the CLARITY Act’s stablecoin yield language. They support the broader bill but say current rules on interest, yield, and rewards are too vague and could let payment stablecoins act as deposit substitutes instead of transaction tools. The groups want Section 404 clarified to strengthen the ban on interest and prevent workarounds through alternative incentives, warning of possible deposit flight. The pushback comes ahead of a House hearing on July 17 and adds to growing resistance from banks and Democrats over whether crypto firms should be able to offer stablecoin yields without bank-like requirements. Meanwhile, some law enforcement groups and crypto industry coalitions continue to support the bill.
