Banking trade associations have expanded their lobbying campaign against the stablecoin yield compromise in the CLARITY Act. The groups are now targeting multiple senators on the Banking Committee.
The push escalates a dispute between banks and the White House over whether yield-bearing stablecoins threaten traditional deposits.
White House and Banks Clash Over Stablecoin Yield Data
The Tillis-Alsobrooks compromise would ban passive yield on stablecoin balances while allowing activity-based rewards. Banking groups argue even this restricted framework could siphon deposits from the traditional system.
The Consumer Bankers Association commissioned economist Andrew Nigrinis to dispute the White House Council of Economic Advisers’ April 8 report.
That analysis found banning stablecoin yield would boost bank lending by just $2.1 billion. It estimated a net consumer cost of $800 million from the prohibition.
The CBA-backed paper argues those risks grow as the stablecoin market scales beyond $300 billion. The American Bankers Association has separately warned of up to $6.6 trillion in potential deposit outflows. Reportedly, banking groups have begun lobbying senators beyond the core negotiators.
The White House has previously criticized banks for blocking stablecoin legislation.
Patrick Witt, executive director of the White House Presidential Advisory Committee on Digital Assets, dismissed the continued opposition.
“It’s hard to explain any further lobbying by banks on this issue as motivated by anything other than greed or ignorance. Move on,” he said.
Senator Tillis told reporters his team was “still going back and forth” on releasing the compromise text this week.
Senator Alsobrooks said she expected it “probably” next week. If the Banking Committee does not clear the bill in April, passage in 2026 becomes unlikely.
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