Banks Divided Over Stablecoin Yield Provisions in CLARITY Act
- Large consumer banks criticize the new stablecoin yield language as “drafted too narrowly.”
- The Independent Community Bankers of America (ICBA) has raised concerns about the proposed changes.
- Senator Bernie Moreno indicates that lawmakers aim to move the bill to Senate markup next week.
- There is a projected chance of over 60% for the CLARITY Act to pass by 2026, according to Polymarket data.
- Senate Banking Committee Chairman Tim Scott seeks full Republican support before negotiations with Democrats.
The ongoing debate around how the CLARITY Act addresses stablecoins yields is creating friction between banks and lawmakers, particularly regarding yield-bearing provisions. While larger banks express dissatisfaction, smaller lenders show support for the revised language.
As discussions progress, there remains optimism for approval by mid-2026, with significant backing from key lawmakers and market participants anticipating a markup soon. (Source)
