Banking lobby attempts to kill Clarity Act’s stablecoin progress as markup is scheduled for next week
CryptoSlate
Major US banking groups are lobbying to stall the CLARITY Act over concerns that stablecoin rewards could cause deposit flight and undermine traditional banking.Summary
The banking sector is aggressively lobbying against the CLARITY Act, specifically targeting provisions related to stablecoin yield distributions. A coalition of major banking trade groups, including the American Bankers Association, argues that the current legislative draft contains loopholes that allow crypto firms to offer rewards mimicking interest, which could drain deposits from traditional institutions. Despite this opposition, Senate proponents like Senators Thom Tillis and Cynthia Lummis are pushing forward, aiming to advance the bill through a committee markup scheduled for the week of May 11 with the goal of reaching the President's desk by late June.
(Source：CryptoSlate)