- Banking groups escalate lobbying against stablecoin rewards, urging stricter bans to prevent deposit outflows.
- Yield clause dispute continues to delay CLARITY Act, with lawmakers divided and draft text still unreleased.
- Timeline pressure grows as markup slips and confidence in bill passage declines amid ongoing disagreements.
Banking groups have intensified efforts to change the CLARITY Act’s stablecoin yield proposed rules as a Senate markup approaches. According to journalist Eleanor Terrett, the North Carolina Bankers Association urged members this week to contact Senator Thom Tillis. The push comes as lawmakers and industry players remain divided over how stablecoin rewards should be handled.
Bank Groups Escalate Pressure on Lawmakers
Terrett reported that the North Carolina Bankers Association circulated an internal email to member banks. The message urged employees to call Tillis’s office and deliver a prepared statement. It argued the current compromise “does not accomplish the goal” of limiting deposit outflows.
Notably, the script called for a strict ban on stablecoin rewards tied to holding balances. It rejected carve-outs that could allow incentives through minor activity or loyalty programs. The email also told employees they would not need to answer follow-up questions.
Meanwhile, lobbying efforts have expanded beyond Tillis. Banking trade groups have begun contacting other senators on the Senate Banking Committee. This broader outreach reflects growing concern over the latest draft language.
Stablecoin Yield Dispute
The stablecoin yield clause continues to hold up progress on the bill. According to Punchbowl, banking groups have raised fresh objections to the current proposal. These concerns follow earlier criticism of the White House report on stablecoin yield.
The American Bankers Association said the report focused on the wrong issue. It argued that deposit outflows, not lending capacity, should drive the discussion. However, the Council of Economic Advisers stated that deposit risks remain “quantitatively small.”
Despite that finding, banks warn that stablecoin rewards could shift large volumes of deposits. At the same time, lawmakers have yet to release updated text. This delay keeps negotiations ongoing.
White House Response and Timeline Pressure
White House crypto advisor Patrick Witt responded publicly to the lobbying efforts. He said the Tillis-Alsobrooks compromise already addresses deposit concerns. He added that continued lobbying appears unnecessary.
Witt urged banking groups to move past the issue. However, disagreements persist as the Senate schedule tightens. The Banking Committee plans to review Federal Reserve Chair nominee Kevin Warsh next week.
As a result, an April markup for the CLARITY Act now appears unlikely. Additionally, prediction market data shows declining confidence in passage this year. Odds of approval have fallen from 64% to 48%, reflecting the latest setback.
