There’s been an ongoing saga around the wording of stablecoin yield clauses in the Clarity Act draft legislation. The latest iteration of the clause was released on Friday, and now the major banking associations have pushed back. While the latest draft includes wording that recognizes the importance of not offering deposit-like functionality, the exceptions are broad.
In particular, while the clause prohibits deposit-like payments, it also permits rewards tied to loyalty and membership programs to be calculated by reference to balance, duration and tenure, a combination the banking associations argue undermines the prohibition’s stated intent. The promise to follow up with detailed feedback.
“Senators Tillis and Alsobrooks are seeking to achieve the correct policy goal – prohibiting the payment of yield and interest on stablecoins; however, the proposed language falls short of that goal. It is imperative that Congress get this right,” the associations said in a joint statement. They include the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum and Independent Community Bankers of America.
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