TLDR Tech / Crypto
Banks Push Back on CLARITY Act Stablecoin Yield Compromise
The American Bankers Association is opposing stablecoin yield provisions in the CLARITY Act compromise, arguing the Tillis-Alsobrooks text falls short on deposit protection even though the bill passed the House 294-134 last July. Banks warn that broad stablecoin adoption could cut consumer and small-business lending by one-fifth or more. White House economists disputed that projection, estimating a stablecoin yield ban would raise bank lending by only $2.1 billion, a 0.02% increase. Coinbase and Circle have backed the compromise, which bans stablecoin rewards economically or functionally equivalent to deposit interest while preserving a carve-out for bona fide activities.
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