US banking lobby urges senators to close ‘stablecoin loophole’ ahead of crypto bill markup

Ahead of this week's expected Senate crypto bill vote, the American Bankers Association warned stablecoin yield provisions could help reduce bank deposits.

The American Bankers Association is lobbying US senators ahead of this week’s Senate Banking Committee markup of crypto legislation, warning that proposed stablecoin rules could incentivize consumers to move deposits out of banks.

In a Sunday message to member bank CEOs shared on X by Punchbowl News reporter Brendan Pedersen, ABA president and CEO Rob Nichols said the current version of the CLARITY Act does not adequately prevent crypto companies from offering interest-like rewards tied to payment stablecoins.

Nichols urged bankers to contact senators and encourage employees to do the same before Thursday’s committee markup, describing the issue as an “urgent advocacy fight” for the banking industry.

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