Banks Split Over Senate Stablecoin Yield Compromise Ahead of Markup
Banks are splitting over the Senate stablecoin-yield compromise after Sens. Thom Tillis and Angela Alsobrooks signaled the issue was effectively settled ahead of a Senate Banking Committee markup. Big banks with consumer-facing arms are taking issue with the final language, while banks without consumer-facing arms appear more comfortable, and some community banks are signaling support even as their Washington trade group voices concerns.
A major coalition of bank trade associations said it was dissatisfied with the compromise brokered by Tillis and Alsobrooks. Critics argue the restriction is drafted too narrowly and still leaves room for crypto firms to work around it, meaning the measure changes how yield is offered rather than eliminating it; the trade groups are planning broader outreach to Senate Banking Committee members beyond the two senators before the markup.
From the sources (7 posts)
@eleanorterrett🚨JUST IN: Banking trade groups weigh in on the stablecoin yield compromise, saying it “falls short” of fully prohibiting the payment of yield and interest on stablecoins, but avoid criticizing it heavily. They say lawmakers can expect sugge
@cointelegraph🇺🇸 JUST IN: Banking trade groups say the CLARITY Act's stablecoin yield language "falls short" of a full prohibition. They plan to share suggested edits with lawmakers in the coming days.
@theblockcoBank trade groups say Senate stablecoin reward fix 'falls short' amid deposit protection concerns
@eleanorterrett🚨NEW: Joint statement from @SenThomTillis and @Sen_Alsobrooks on the stablecoin yield compromise amid pushback from banking trades, signaling the deal is likely final. "…we respectfully agree to disagree."
@cointelegraph🇺🇸 JUST IN: Senators Tillis and Alsobrooks say the stablecoin yield compromise in the CLARITY Act is final, pushing back on banking industry criticism with a joint statement. "We respectfully agree to disagree."
@eleanorterrett🚨NEW: A divide is forming in bank land over the yield compromise. Big banks with consumer facing arms are taking issue, while those without appear more comfortable with the final language. Some community banks are also signaling support, th
@punchbowlnewsA major coalition of the bank trade associations announced Monday evening that they were dissatisfied with a compromise brokered by Sens. Thom Tillis and Angela Alsobrooks to restrict stablecoin yield and rewards. More from @BrendanPederse