US Top Five Bankers Association: The 《CLARITY Act》 stablecoin compromise language is insufficient, and there are still major loopholes

In a joint statement released on May 4 by five banking industry associations, including the American Bankers Association (ABA), regarding the stablecoin yield compromise proposal submitted by Senators Tom Tillis and Angela Alsobrooks for the “Clarity Act,” the various institutions said the proposed wording is insufficient to prohibit paying yield and interest on stablecoins, calling it a “major loophole that must be addressed.”

Core claims of the joint statement by five banking industry associations

According to a joint statement released on May 4, 2026, the signatory organizations include the American Bankers Association (American Bankers Association), the Bank Policy Institute (Bank Policy Institute), the Consumer Bankers Association (Consumer Bankers Association), the Financial Services Forum (Financial Services Forum), and the Independent Community Bankers of America (Independent Community Bankers of America).

In the joint statement, the institutions pointed out that the proposed wording would allow stablecoin rewards to be calculated based on holding duration, balances, and holding period. They said such a design could incentivize users to hold stablecoins idle for the long term, “offsetting the ultimate goal of avoiding deposit flight.” The joint statement said: “This is a major loophole that must be addressed.”

Eleanor Terrett report: differences of views emerge among banks

According to crypto journalist Eleanor Terrett’s reporting on social media, there are growing differences among banks regarding their positions: some large banks have not yet fully accepted the revised draft of the CLARITY Act, while other financial institutions—including some community banks—support the current wording.

According to Terrett’s account on social media, the core concern from banks is the inadequacy of the wording: “This still leaves room for crypto companies to evade restrictions.” She also noted: “In their view, this isn’t a real compromise, because it hasn’t fully eliminated yield—it only changes how yield is provided.”

According to Terrett’s reporting, some large banks may first submit this proposal to other members of the Senate Banking Committee for lobbying before pushing further revisions.

FAQ

Which banking industry organizations issued the joint statement? When was the statement released?

According to the joint statement, the signatory organizations include the American Bankers Association (ABA), the Bank Policy Institute, the Consumer Bankers Association, the Financial Services Forum, and the Independent Community Bankers of America. The joint statement was released on May 4, 2026.

What is the core reason the banking industry opposes the CLARITY Act stablecoin compromise proposal?

According to the joint statement, the institutions said the proposed wording would allow yield to be calculated based on holding duration, balance, and holding period, and would fail to completely ban paying yield and interest on stablecoins. The statement called it a “major loophole that must be addressed.”

What differences in positions among banking industry organizations did Eleanor Terrett report?

According to Terrett’s reporting on social media, some large banks have not fully accepted the revised draft, while some community banks support the existing wording; large banks may lobby other members of the Senate Banking Committee before pushing further changes.