Over 100 U.S. bank executives urge Senate to strengthen the CLARITY Act's stablecoin yield restrictions, citing potential loss of hundreds of billions in deposits.
DeFi & Yields ·
More than 100 bank executives have submitted correspondence to Senate leadership calling for stricter yield restrictions under the CLARITY Act, specifically targeting stablecoin products. The executives warned that local banks face potential deposit losses in the hundreds of billions if stablecoins offering yield continue to proliferate without tighter regulation.
The CLARITY Act includes provisions addressing stablecoin issuance and associated financial activities. The executives' position reflects concern that yield-bearing stablecoins could shift deposits away from traditional banking institutions toward crypto-native alternatives, undermining the deposit base that funds conventional lending and banking operations.
It remains unclear what specific modifications to the yield prohibition the executives are requesting, whether the Senate has indicated receptiveness to strengthening the measure, or what timeline may apply to legislative action on these proposals.