Five major U.S. bank industry associations officially oppose a proposed

Crypto analyst Jaret Seiberg of TD Cowen said that on Monday (May 12), five major U.S. banking industry associations officially opposed a proposed stablecoin yield compensation scheme. The relevant groups—Bank Policy Institute, Financial Services Forum, Independent Community Bankers of America, Consumer Bankers Association, and American Bankers Association—said the compensation would allow platforms to provide rewards on transaction-linked stablecoins, “failing to address” their concerns.

Seiberg noted that a unified opposition position from both large and small-to-mid-sized banks strengthens their position in the legislative standoff. “We don’t believe there is a middle ground that can satisfy both banks and major crypto platforms,” he said, adding that banks want to block yield payments aimed at keeping retail investors’ liquidity in their crypto wallets. The analyst said the Senate review process may be pushed to June, with a recess in August as the final deadline to pass the Clarity Act.