pushed<\/a> from an expected April review into May as bank lobbying around stablecoin yield provisions intensifies on Capitol Hill.<\/p>\nAccording to newsletter outlet Crypto In America, the Senate Banking Committee has until Friday to decide whether to notice the bill for markup the week of April 27, but the calendar is already crowded by the confirmation hearing for Federal Reserve chair nominee Kevin Warsh.<\/p>\n
In parallel, the North Carolina Bankers Association and other industry groups are urging members to call Senator Thom Tillis\u2019s office and demand changes to the CLARITY Act\u2019s proposed restrictions on yield-bearing stablecoins, reopening a compromise deal hammered out with crypto firms just weeks ago.<\/p>\n
Banks clash with White House over stablecoin yields<\/h1>\n
Banking trade bodies, including the American Bankers Association, have warned that allowing stablecoin rewards could drain up to $6.6 trillion in deposits from the banking system, arguing that yield-paying tokens would accelerate an exodus from traditional accounts.<\/p>\n
<\/p>\n
That position sits uneasily with a recent report from the White House Council of Economic Advisers, which concluded that banning stablecoin yields would boost bank lending by only $2.1 billion, or roughly 0.02% of a $12 trillion loan book, while imposing a net welfare cost of about $800 million on consumers.<\/p>\n
The CEA paper argued that a \u201cyield prohibition would do very little to protect bank lending, while forgoing the consumer benefits of competitive returns on stablecoin holdings,\u201d giving crypto and fintech advocates fresh ammunition against a blanket ban.<\/p>\n
White House Crypto Council executive director Patrick Witt has taken that fight public, writing on X that banks are \u201cfurther lobbying out of greed or ignorance\u201d and urging lawmakers not to let the bill be \u201cheld hostage\u201d by yield fears that the administration\u2019s own data plays down.<\/p>\n
Senator Tillis, a Republican from North Carolina and a key negotiator on the stablecoin language, has floated holding an in-person \u201ccrypto carnival\u201d session with industry participants, a move he admits could extend the timeline but which he says is needed because \u201cthere are still issues to negotiate.\u201d<\/p>\n
Beyond yield, the CLARITY Act still has to navigate contentious provisions around DeFi, conflicts of interest and ethical rules for lawmakers trading tokens, and even if it clears the Senate Banking Committee in late April or May it must still be reconciled with a House version before landing on President Trump\u2019s desk.<\/p>\n
As highlighted in an earlier crypto.news story on how 2025 would make tokenized real-world assets mainstream, the fight over stablecoin yields is increasingly seen as a proxy for who captures trillions in future onchain savings flows, with banks, issuers and DeFi platforms all jockeying for control of the same digital dollar stack.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
U.S. CLARITY Act faces a May delay as banks fight stablecoin yields, clashing with a White House report that says the lending impact is just 0.02%. Summary U.S. CLARITY Act\u2019s…<\/p>\n","protected":false},"author":1,"featured_media":3481,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-26348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=26348"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26348\/revisions"}],"predecessor-version":[{"id":26349,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26348\/revisions\/26349"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/3481"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=26348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=26348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=26348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}