The CLARITY Act is running into another delay as disputes over stablecoin rewards remain unresolved. Banking groups are intensifying pressure on lawmakers, calling for stricter limits on incentives tied to holding stablecoin balances. With the Senate schedule tightening, updated legislative text still has not been released.
North Carolina bankers urged members to contact Senator Thom Tillis
Journalist Eleanor Terrett reported that the North Carolina Bankers Association asked its members this week to reach out to Senator Thom Tillis. In an internal email sent to member banks, the group instructed employees to call Tillis’s office and use a prepared script. That message said the current compromise “does not accomplish the goal” of limiting deposit outflows.
The script pushed for a strict ban on stablecoin rewards linked to held balances. It also rejected carve-outs that could preserve incentives through minor account activity or loyalty programs. The email added that employees would not need to answer follow-up questions. The position was narrow and explicit.
Lobbying campaign expands beyond one Senate office
The effort has moved beyond Tillis. Banking trade groups have started contacting other senators on the Senate Banking Committee, a sign that concern over the latest draft language is growing rather than fading. The central dispute remains whether stablecoin yield features should be broadly prohibited or allowed under limited exceptions.
Punchbowl reported that banking groups have raised new objections to the current proposal. That follows earlier criticism of the White House report on stablecoin yield. The American Bankers Association argued that the debate is focused on the wrong question, saying deposit outflows—not lending capacity—should be the main issue. The Council of Economic Advisers, by contrast, said deposit risks remain “quantitatively small.”
White House says the Tillis-Alsobrooks compromise already addresses deposit risks
Banks have not backed off. They continue to warn that stablecoin rewards could shift large volumes of deposits out of the banking system. White House crypto adviser Patrick Witt responded publicly, saying the compromise advanced by Tillis and Alsobrooks already addresses deposit concerns. He also said continued lobbying appears unnecessary.
The argument is still open. Negotiations have not concluded, and lawmakers have yet to publish revised text for the bill.
Markup timing slips as passage odds fall
Time pressure is building in the Senate. The Banking Committee is scheduled to review Federal Reserve chair nominee Kevin Warsh next week, making an April markup of the CLARITY Act look increasingly unlikely. As procedural delays mount, confidence in the bill’s path this year has weakened.
Prediction market data shows the odds of approval this year falling from 64% to 48%. With the stablecoin yield clause still unsettled, the fight over deposit risk and the scope of regulation remains active.