Five major US banking associations have united to oppose the compromise language on stablecoin yields in the CLARITY Act, just days before a critical Senate Banking Committee markup scheduled for May 14. The American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America released a joint statement arguing that the proposed text does not adequately address their concerns. They claim that Section 404 of the bill still allows crypto platforms to effectively offer interest-like rewards on digital assets, which could lead to a significant outflow of deposits from traditional banks. The coalition warned that such mechanisms might reduce consumer, small-business, and farm loans by 20% or more, and urged Congress to refine the language before proceeding.
Senators Cynthia Lummis and Thom Tillis swiftly countered the banking lobby’s objections. Lummis stated that the bipartisan text represents months of diligent negotiations to reach a workable compromise on stablecoin yields. Tillis went further, suggesting that some banking industry actors may be using the yield issue as a pretext to block the entire CLARITY Act. He emphasized that the bill’s supporters respectfully disagree with those who oppose both stablecoin regulation and broader crypto legislation. The strong public defense from both senators indicates that the bipartisan coalition behind the compromise remains united as the markup deadline approaches.
The CLARITY Act passed the House in July 2025 and the Senate Agriculture Committee in January 2026, but has been stalled in the Senate Banking Committee due to the stablecoin yield dispute. According to previous reports, senators including Lummis and Bernie Moreno warned that failure to advance before the Memorial Day recess could delay the bill’s progress until 2030. The White House has set a goal of presidential signature by July 4, and crypto adviser Patrick Witt confirmed that the stablecoin yield deal is considered finalized. Ripple CEO Brad Garlinghouse at Consensus Miami 2026 described the recent Senate momentum as a significant positive shift.
Prediction markets currently estimate the bill’s chances of becoming law in 2026 at over 60%, though Galaxy Digital’s head of research Alex Thorn puts the odds closer to 50-50. A recent HarrisX poll found that 52% of registered US voters support the CLARITY Act, with 47% indicating they would consider crossing party lines to back a candidate who supports the bill. To become law, the legislation must still clear the Senate Banking Committee markup, survive a 60-vote floor threshold, and be reconciled with versions passed by the Senate Agriculture Committee and the House of Representatives. Each of these steps presents potential obstacles.