US Banks Criticize New Stablecoin Rules in CLARITY Act Draft

Major U.S. banking groups say they remain unsatisfied with the CLARITY Act’s revised language on stablecoin yield. They argue that it still does not go far enough to protect traditional bank deposits.

In a joint statement, organizations including the American Bankers Association and the Bank Policy Institute said lawmakers are “pursuing the right objective” in seeking to curb stablecoins yield offerings. However, they warned that the current draft “falls short” of effectively achieving that goal.

The dispute between banking and crypto stakeholders has contributed to delays in the bipartisan bill. Notably, it passed the House of Representatives in July by a 294–134 vote.

Banks argue that allowing stablecoin yield products could accelerate deposit outflows from the traditional banking system, potentially tightening lending conditions. This effect could be particularly pronounced for smaller institutions that rely more heavily on stable retail deposits.

However, White House economists have previously downplayed those concerns. They estimated that banning stablecoin yield would have only a minimal effect on bank lending, projecting a net increase of roughly $2.1 billion—about 0.02%.

The ongoing divide raises questions about whether the legislation can clear Congress ahead of the 2026 midterm election cycle.

Source: https://www.aba.com/about-us/press-room/press-releases/banking-trades-statement-on-crypto-market-structure-yield-language