The CLARITY Act in the U.S. is stirring controversy once again. Banks are arguing over stablecoin yield provisions despite the release of the new language text. Issues regarding stablecoins yields are causing new friction between the banking industry and lawmakers.
Banks Question New Stablecoin Yield Text In CLARITY Act
“A divide is forming in bank land over the yield compromise.” wrote Journalist Eleanor Terrett. Large consumer-oriented banks are complaining, she said.
Meanwhile, institutions without retail exposure have shown acceptance for the revised language. The split continues among community banks as Independent Community Bankers of America (ICBA) has voiced concerns. Nonetheless, smaller lenders are showing support.
How the CLARITY Act treats yield-bearing stablecoins is at the heart of the controversy. A big bank said the language in the new measure is “drafted too narrowly,” Terrett reported. They stated it still leaves room for crypto businesses to find ways to circumvent it.
They believe that “it’s not a true compromise because it doesn’t eliminate yield completely.” Instead, “it just changes how it’s offered.”
That statement has attracted criticism from Patrick Witt. He slammed them by saying, “banks sure have a funny way of defining ‘compromise.’”
They are aiming to engage with lawmakers beyond Senator Thom Tillis and Senator Angels Alsobrooks, who were in-charge of settling the stablecoin yield issues.
Lawmakers & Market Participants Remain Optimistic On 2026 Approval
However, the momentum around the CLARITY Act seems to be holding strong even though the industry is coming back at her. Senator Bernie Moreno said progress is picking up. In a recent statement, he stated that the lawmakers are preparing to move the bill to a Senate markup next week.
He said work is underway to bring all the jurisdictional elements together into a “tidy package.” The idea is to get the bill to the U.S. President Donald Trump’s desk “before the end of June,” he added. He also indicated that the CLARITY Act may be signed into law “before July 4.”
Meanwhile, Senate Banking Committee Chairman Tim Scott is trying to get the full Republican backing before negotiations with Democrats. Market participants are expecting a markup in May.
The debate coincides with an intense Senate competition. Alex Thorn drew attention to the need for urgency. He said the control of the chamber could affect the CLARITY Act’s future.
If Democrats win back control, Sherrod Brown or Elizabeth Warren might be in charge of the Senate’s Banking Committee, he said. Due to their anti-crypto stance, they could wave off the bill from the committee’s priority list.
Still, sentiment in the market remains on the positive side. Polymarket data indicates the CLARITY Act has more than 60% chance of passing in 2026.
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