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Bankers Say Stablecoin Yield Ban Draft Has Flaws

Banking groups warn stablecoin yield clause fails its core purpose due to broad loopholes.

  • Major U.S. banking groups have publicly opposed the latest draft of the Clarity Act’s stablecoin yield clause, arguing it fails to achieve its intended goal.
  • The associations contend that broad exceptions for loyalty and membership programs effectively undermine the prohibition on deposit-like payments.
  • The groups include the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, and the Independent Community Bankers of America.

Major U.S. banking associations pushed back forcefully on Friday against the latest wording in the draft Clarity Act legislation, which aims to govern stablecoins. Their joint statement warned that the current language fails to properly ban yield payments, a core policy goal for Senators Tillis and Alsobrooks.
However, the associations argue the proposed exceptions are dangerously broad. They specifically highlighted permissions for rewards tied to loyalty programs that are calculated by balance, duration, and tenure.
Consequently, the banking groups assert this combination of factors directly contradicts the clause’s intent to prevent deposit-like functionality. “It is imperative that Congress get this right,” the associations said in their critical joint statement.
The groups have promised to follow up with more detailed feedback on the contentious provision. This ongoing legislative saga highlights the significant challenges in crafting clear digital asset rules.

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