Major U.S. banking trade groups argued that the stablecoin provisions within the CLARITY Act should be tightened further. The organizations specifically raised concerns about interest-like rewards offered to stablecoin holders, saying stronger restrictions are necessary to protect the financial system. However, they also noted that limited incentive mechanisms could still be allowed for certain payment-focused stablecoin activities.
The banking sector warned that without sufficient safeguards, stablecoin products could reduce traditional bank deposits and negatively affect lending activity across the economy. Industry representatives added that they will continue working with senators in “good faith” to address concerns surrounding stablecoin yield mechanisms and improve the bill’s chances of passing the full Senate vote.
Earlier today, the U.S. Senate Banking Committee approved the CLARITY Act, formally known as the Crypto Market Structure Bill, by a 15-9 vote. The legislation will now move forward to the Senate floor for a full vote. The bill is considered one of the most significant crypto regulatory proposals in the U.S., covering everything from stablecoins to broader market structure rules.
