U.S. Banking Groups Press Senate to Tighten Stablecoin Language in Digital Asset "Clarity Act"

The American Bankers Association (ABA), the Independent Community Bankers of America (ICBA), and 76 state banking associations are urging Senate leaders to revise the stablecoin section of the Digital Asset Market Clarity Act. In a joint push, the groups argue the current draft permits "activitybased rewards" for stablecoins, a feature they say could make the products resemble bank deposits. The banking industry warns that such incentives could accelerate a shift of funds out of traditional deposit accounts. The outreach underscores continued resistance from banks as the Clarity Act moves through Congress. The bill is designed to set regulatory jurisdiction for digital assets, but the stablecoin language has become a key friction point that could complicate the legislation's path in the Senate. Key Takeaways - Banking groups are seeking amendments that would limit activitybased rewards for stablecoins. - The industry contends the current framework could allow stablecoins to operate like deposits, potentially drawing funds away from banks. - Market pricing indicates some participants see the lobbying effort as reducing the odds of the bill passing in its current form and being signed into law. What to Watch Senate leaders' response and any proposed revisions to the stablecoin provisions will be in focus. Senate Banking Committee Chairman Tim Scott and Senate Majority Leader Chuck Schumer are expected to be central to shaping the next steps. Changes emerging from negotiations could shift market expectations for the bill's prospects. Get live predictionmarket analysis, powered by Vera. Sign up for Vera.