Credit unions and state leagues support the Clarity Act but urge stronger language on stablecoin yield provisions to prevent deposit migration.
DeFi & Yields ·
Americas' credit unions and all 50 state credit union leagues have backed the Clarity Act in principle, though they are pressing for tighter wording on stablecoin yield provisions. The groups worry that the current Tillis-Alsobrooks compromise language could permit "functionally passive" reward structures designed to draw deposits away from local credit unions, mirroring concerns already raised by the banking sector.
The move reflects broader anxiety within the credit union system about competitive pressures from stablecoin platforms. Former NCUA Chairman Rodney Hood recently highlighted credit unions' significance in modernizing the financial system, yet the leagues' intervention signals unease that the proposed legislation may not adequately protect their members' deposit base from migration to crypto-based yield products.
The precise language revisions sought by the credit union organizations remain unspecified in available statements. The outcome will depend on how senators respond to the competing requests from financial institutions and whether the compromise text is modified ahead of any vote.