Back

U.S. Banking Trade Groups Say Clarity Act Stablecoin Yield Proposal Still Falls Short

Major U.S. banking associations publicly rejected the CLARITY Act’s stablecoin yield compromise, highlighting a widening split with Coinbase and Circle over whether the bill adequately separates crypto incentives from deposit-like products.

Fact Check
The claim is strongly supported by multiple independent, authoritative sources. The Block's primary reporting names five specific banking trade groups (American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America) that issued a joint statement criticizing the latest CLARITY Act stablecoin reward language as falling short of protecting bank deposits. This is corroborated by crypto.news, The Information, and the ABA's own publication (ABA Banking Journal), all dated May 4-5, 2026. The specific objections cited - loopholes around activity-based rewards calculated by duration/balance/tenure and interest via membership organizations - are consistent across sources. Senator Tillis's own X post defending the compromise further confirms the banking groups' opposition is real and publicly acknowledged. No conflicting evidence was found.
Summary

Major U.S. banking trade groups said the latest CLARITY Act language on stablecoin rewards still falls short of protecting bank deposits. The new report adds that major banking associations publicly rejected the stablecoin yield compromise brokered by Senators Tillis and Alsobrooks, and that the dispute has now split the groups publicly from Coinbase and Circle. The criticism remains centered on whether the bill draws a strong enough line between prohibited bank-like stablecoin interest and permitted rewards or incentives from crypto firms.

Terms & Concepts
  • Stablecoin rewards: Incentives, returns, or benefits offered to stablecoin holders; policymakers are debating when such rewards begin to resemble deposit interest.
  • CLARITY Act: A proposed U.S. legislative framework referenced in the sources, with provisions addressing how stablecoin-related rewards or yield may be treated.
  • Bank deposits: Funds held at regulated banks that banking groups argue could face competitive or stability risks if stablecoins offer similar interest-like features.