U.S. banking groups have urged Senate leadership to strengthen restrictions on interest, yield and rewards linked to stablecoins (crypto tokens designed to maintain stable value) under Section 10404 of the CLARITY Act. In a joint letter released by the American Bankers Association, the groups said the provision could still permit indirect compensation for holding stablecoins. They proposed expanding the prohibition beyond methods economically or functionally equivalent to bank-deposit interest to include methods that are substantially similar. The groups also sought removal of a provision allowing rewards based on stablecoin balances or holding periods. They argued that such incentives could make stablecoins function as alternatives to deposits, potentially pulling funds from community financial institutions and limiting lending to small businesses, agriculture and housing.