ABA, state banking groups push back on CLARITY Act stablecoin yield provisions

Written by Zoltan Vardaistaff writerReviewed by Robert Lakinstaff editorWritten by Zoltan Vardaistaff writerReviewed by Robert Lakinstaff editorABA, state banking groups push back on CLARITY Act stablecoin yield provisionsLatest NewsPublishedJul 14, 2026ABA and state banking associations published a joint letter calling for more detail on the CLARITY Act’s stablecoin yield provisions, ahead of the bill’s House hearing on July 17.A wide swath of the US banking industry is urging Senate leaders to amend the stablecoin yield provisions of the Digital Asset Market Clarity Act (CLARITY) now under consideration. The American Bankers Association (ABA), the Independent Community Bankers of America (ICBA) and 76 other state banking associations sent a joint letter to Senate leaders that claimed that the current language on stablecoin interest, yield and rewards is too ambiguous and argued that new amendments need to prevent payment stablecoins from acting as deposit substitutes rather than pure transaction tools.The joint letter, which showed support for the broader bill, said the ABA is concerned that ambiguities within the bill “could encourage stablecoin arrangements to effectively function as substitutes for deposits, despite Congress’s longstanding and clearly stated intent that payment stablecoins should serve as transaction tools rather than store-of-value products,” according to a press release published on Monday.This marks the latest pushback from the US banking industry against the act’s stablecoin yield provisions and comes just days ahead of the bill’s scheduled House of Representatives hearing on July 17. The bill aims to establish the first regulatory framework for digital assets in the US.The banking groups said that the current draft poses the risk of a “deposit flight,” urging lawmakers to revise section 404 to “clarify the prohibition on interest and yield and help ensure that the prohibition cannot be circumvented through alternative incentive structur…

ABA, state banking groups push back on CLARITY Act stablecoin yield provisions

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