Banks hit back on Clarity Act 🏦

While crypto advocates are onboard with the latest compromise language regarding stablecoin yield, the banks still aren't having it.

Author

Andrew Hayward
May 09, 2026

đź“ť What you need to know

Banking trade groups are pushing back on a proposed compromise in the Clarity Act, a major crypto bill working its way through the Senate. The sticking point: whether crypto companies should be allowed to offer yield or rewards on stablecoins. Banks argue this would pull customers away from traditional savings accounts, while crypto firms like Coinbase say they deserve to compete.

Senators Tillis and Alsobrooks crafted a compromise, but banking groups said Friday that it has loopholes that crypto companies could exploit—like tying rewards to account balances or staking activity. They're asking for tighter language to close those gaps. The clock is ticking, though: With the Senate out half the month and midterms approaching, supporters say the bill needs to move now or it could stall indefinitely.

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