Banking Industry Says Clarity Act Stablecoin Proposal Would Enable Evasion
In briefTop banking groups say the new Clarity Act language leaves loopholes regarding stablecoin yield.The compromise would ban direct yield on stablecoins but still allow some rewards tied to account balances.The banks statement comes as senators prepare for a long-delayed committee vote on the Clarity Act. A coalition of the nations top banking trade groups, representing Wall Street giants and community banks alike, issued a statement Friday expressing concern that new language in a major crypto bill would benefit digital assets companies and disrupt the traditional banking industry. For months, the banking industry and the crypto lobby have battled over key language in the Clarity Act, a bill that would formally legalize most crypto activity in the United States. Banks want to add language to the legislation banning crypto companies from offering yield on stablecoins, cryptocurrencies pegged to the value of the U.S. dollar. The banks say such programs could make traditional, low-yield savings accounts less attractive; crypto companies, including Coinbase, have argued they should be able to compete with traditional finance. For nearly four months, the skirmish over stablecoin yield has kept the Clarity Act from advancing in the Senate. Last week, two key lawmakers on the Senate Banking Committee finally revealed a