Senate panel considers CLARITY Act as banking groups propose stablecoin yield changes
The Senate Banking Committee is gearing up to mark up the CLARITY Act, and the banking industry wants to make sure stablecoins dont start looking too much like savings accounts. A coalition of major banking groups, including the American Bankers Association, is lobbying hard against provisions that would allow stablecoin issuers to offer anything resembling interest payments to holders. The Tillis-Alsobrooks compromise Senators Thom Tillis and Angela Alsobrooks brokered a bipartisan deal that attempts to split the difference. The compromise prohibits passive interest-like yields on payment stablecoins, the kind of set-it-and-forget-it returns that would make a stablecoin functionally identical to a bank deposit. What it does allow: activity-based rewards tied to trading or platform usage. Senator Tillis framed the compromise as a firewall. The deal, he stated, prevents stablecoin rewards from mimicking bank deposit interest. The banking coalition specifically targeted Section 404 of the bill. Their argument: the provision as originally written risks deposit flight and could undermine the capital base that community banks and regional lenders depend on. Legislative timeline and momentum The Senate Banking Committee has scheduled its markup for the week of May 11, with a potential committee vote targeted for May 14, 2026. Senate leadership is pushing for expedited passage, aiming to









