Banks Still Hung Up on Stablecoin Yield as Senate Pivots to Ethics and DeFi 🏦

Banking groups are continuing to lobby lawmakers for a ban on stablecoin yield as part of the CLARITY Act, even after a compromise agreement was reached earlier this year. The renewed push comes as the U.S. Senate shifts its attention to ethics and DeFi issues, with the window narrowing to schedule a floor vote on the crypto bill before the August recess.

Crypto journalist Eleanor Terrett reported on X that state bankers' association conferences across the country are focusing on engaging with Senate lawmakers on the stablecoin yield provision, citing people familiar with the gatherings. The stablecoin yield issue remains "very much in play," according to Terrett's source, particularly as senators outside the relevant committees become more familiar with the CLARITY Act. The votes of these lawmakers could prove pivotal as the legislation heads toward a floor vote.

JPMorgan CEO Jamie Dimon has previously vowed to fight the stablecoin yield provision despite the bill clearing the markup stage. The banking groups had earlier called for a broad prohibition on yields before negotiations produced the existing compromise text in the CLARITY Act.

Senate Republicans are meanwhile working to reach a deal with their Democratic counterparts, with the legislative calendar leaving limited time to advance the bill before the recess. The pivot toward ethics and DeFi in the Senate's broader crypto agenda adds another layer of complexity to the negotiations over the CLARITY Act's stablecoin provisions.