Banks Broaden Lobbying Against Stablecoin Yield in CLARITY Act Talks
Banking associations are intensifying their lobbying efforts against proposed stablecoin yield provisions within the CLARITY Act, citing risks to traditional bank deposits.Summary
Banking trade groups, including the Consumer Bankers Association and the American Bankers Association, are expanding their lobbying efforts regarding the CLARITY Act. They oppose a compromise proposal by Senators Tillis and Alsobrooks that restricts stablecoin yield, arguing that even limited yield-bearing activity could trigger significant deposit outflows from the traditional banking system.
The industry push follows a report by the White House Council of Economic Advisers that downplayed the risks of such yields. In response, banking groups have commissioned their own research to highlight potential systemic threats as the stablecoin market scales. Despite criticism from the White House, which has accused banks of acting out of greed, the industry continues to target members of the Senate Banking Committee to block the current legislative framework.
(Source：BeInCrypto)