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Five major associations of American bankers — the American Bankers Association, the Institute of Banking Policy, the Consumer Bankers Association, the Financial Services Forum, and the Independent Community Bankers of America — have criticized the compromise provisions regarding the yield of stablecoins in the CLARITY bill.
The amendments to the legislation were proposed by Senators — Republican Thom Tillis and Democrat Angela Alsobrooks. The amendments prohibit crypto companies from offering yields on deposits in stablecoins if such yields are deemed to be the “functional or economic equivalent” of bank offerings. At the same time, the amendments suggest allowing crypto firms to launch reward programs based on the activity of stablecoin-holding users. In simpler terms, earning interest for holding stablecoins in wallets, akin to deposits and savings accounts, is not permitted, but participation in loyalty programs is allowed, according to the senators.
American bankers assert that even with these amendments, yield-bearing stablecoins could reduce the volume of bank loans by one-fifth or more. The prohibition outlined in the senators’ proposal has been described by bankers as “vague and opaque.” They view the new text as a “significant loophole” and are preparing their own proposals for legislators.
Senators reacted negatively to the criticism. Tillis stated that the amendments are the result of collaboration with all stakeholders, addressing bankers’ concerns regarding deposit outflows.
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“Perhaps some representatives of the banking sector do not want the law to be enacted, and we respectfully maintain our position,” Tillis wrote on X.
Republican Senator Cynthia Lummis, who leads the Senate subcommittee on digital assets and actively supports the bill, referred to the amendments as the most compromise-oriented option that would finally allow the CLARITY bill to be passed.
The Senate Banking Committee plans to review the bill during the week starting May 11. If it successfully passes through the banking committee, the bill will need to secure 60 votes in the Senate plenary session. Additionally, amendments prepared by the Senate Agriculture Committee (which were approved by the committee in January) will need to be considered. The House of Representatives passed the bill in July 2025 — a new version approved by the Senate will need to be reconciled with it. The final step will be the president’s signature on the document.
Previously, the CEO of 250 Digital Asset Management and president of CoinFund, Christopher Perkins, suggested that the crypto industry will continue to evolve even if the CLARITY bill is not enacted in the U.S.
