Banking groups push tighter stablecoin rules – But CLARITY Act momentum holds
What alterations to the stablecoin compromise did banks suggest at the last minute?
The Digital Asset Market Clarity Act of 2025 is once again at odds over another obstacle. The banking organizations have made last-minute adjustments to a compromise on the stablecoin yield, according to a recent Bloomberg update.
Needless to say, these new developments would result in additional adjustments to the compromise recently reached by Democrat Angela Alsobrooks and Republican Senator Thom Tillis.
Banking Groups’ last-minute changes
Several banking advocacy organizations, such as the Consumer Bankers Association and the American Banking Association, completely intend to prohibit stablecoin issuers from offering any incentives on the asset.
However, as per the last compromise, companies should provide incentives to clients who actively use stablecoins.
This, as expected, would have benefited the crypto industry, as they wanted stablecoin issuers to have the same freedoms as banks to increase the appeal of stablecoins to users.
However, the senators’ decision disappointed the banking groups, as they noted in an 8th May letter, when they pointed out,
The proposed language includes exceptions that will enable evasion of the intended prohibition and incentive customers to hold and grow stablecoin balances at the expense of deposits.
The crypto community and Senators seemed unaffected
However, these changes seem to have been ignored by the Senators. In fact, Senator Tim Scott and the Senate Banking Committee are now moving toward markup of the CLARITY Act on the 14th of May.
As expected, the crypto community celebrated this milestone. Here, Coinbase chief policy officer Faryar Shirzad put it best when he said,
Echoing similar sentiments, Paul Grewal, chief legal officer for Coinbase, added,
What’s more?
For those unaware, earlier too Senators Tillis and Alsobrooks had moved ahead with their version of compromise as they had noted,
Some in the banking industry may not want either of these things to happen, and we respectfully agree to disagree.
That said, even the Polymarket odds were sitting at 75% at press time, indicating that the CLARITY Act is nearing approval soon.
Final Summary
- Stablecoin rewards continue to divide banking organizations and crypto companies as the CLARITY Act approaches approval.
- U.S. lawmakers continue to advance crypto regulation despite bank opposition, indicating growing support for stablecoin legislation.
