US Banks Press Senators to Derail CLARITY Act Stablecoin Yield Rule

US banking groups have stepped up lobbying against the CLARITY Act stablecoin yield rule. The North Carolina Bankers Association says it urged member banks to directly contact Senator Thom Tillis’s office, seeking changes to the stablecoin yield compromise already discussed with the crypto industry. The push has reportedly broadened beyond Tillis and co-negotiator Senator Angela Alsobrooks to other Senate Banking Committee members. White House Crypto Council executive director Patrick Witt criticized the campaign as driven by “greed or ignorance,” warning the CLARITY Act must not be held hostage by yield concerns. Bankers’ main claim is that allowing stablecoin yield could cause up to $6.6 trillion in deposit flight from traditional banks. The White House Council of Economic Advisers counters with a 21-page analysis, arguing that banning the CLARITY Act stablecoin yield would raise bank lending by only about $2.1 billion (~0.02% of total US loans) while imposing an estimated ~$800 million net welfare cost on consumers. Under the Tillis–Alsobrooks framework, passive stablecoin yield is banned, but activity-based rewards tied to payments, transfers, and platform use remain allowed. Meanwhile, banking pressure has reportedly moved the Senate Banking Committee markup from April into May, threatening passage before the Memorial Day recess (May 21). For crypto traders, this raises the odds of timing delays and renewed regulatory uncertainty around stablecoin yield, which can affect near-term risk appetite and volatility.