TLDR Tech / Crypto
Banks Push for Tighter Language Ahead of CLARITY Markup
Six banking trade groups, including the Bank Policy Institute, ABA, and ICBA, sent proposed language edits to Senate Banking Committee Republican leadership ahead of next week's CLARITY Act markup, arguing the Tillis-Alsobrooks stablecoin yield compromise still permits rewards programs to replicate deposit interest in practice. The groups claim the current text will "enable evasion" of yield restrictions, despite both senators signaling earlier this week that the compromise was settled. A Senate aide dismissed the push as "pretty milquetoast," noting members have shifted focus to other pending issues such as ethics legislation. The Tillis-Alsobrooks deal, which has been described as a banks-win outcome, bans stablecoin rewards "economically or functionally equivalent" to deposit interest with a narrow carve-out for issuers who can prove their rewards fall outside that definition.
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