Banking Lobby Challenges Stablecoin Yield Provisions in Upcoming Senate Digital Asset Legislation

Story Summary

Banking advocacy groups, including the American Banking Association, are pushing to eliminate stablecoin rewards as the Senate Banking Committee prepares to markup the CLARITY Act. While Senators Thom Tillis and Angela Alsobrooks brokered a compromise allowing transaction-based incentives, banks argue these exceptions facilitate deposit flight. Crypto industry leaders, including Coinbase’s Paul Grewal, characterize the banking lobby’s intervention as an anti-competitive.