Banking Lobby Stalls Clarity Act: 60 Votes in September Will Determine Stablecoin Yields

The bank-crypto conflict over stablecoin yields in the U.S. has reached a critical stage due to the Clarity Act stalling in early August under banking lobby pressure and the upcoming 60-vote threshold in mid-September.

Providing rewards to stablecoin holders has been one of the issues opposed by the financial sector due to concerns that users may move away from low-interest bank deposits. While banks argue that a decrease in deposits could make mortgage and business loans more difficult, crypto companies state that current regulation has largely addressed this issue.

The Clarity Act in the Senate aims to establish a more comprehensive framework regarding the use of stablecoins. However, the banking lobby’s objections—arguing that stablecoin rewards could produce results similar to deposit interest—contributed to the bill stalling again in early August. While the bill is expected to return to the Senate agenda in mid-September, the support of 60 senators is required for approval.

Stablecoin yields pit the banking system against crypto

The gap between deposit interest rates and the yields offered by crypto platforms forms the basis of the debate. While JPMorgan Chase’s standard savings account offers 0.01% interest, the stablecoin yield on Coinbase is approximately 3.5%, and on Kraken and Gemini, it rises to 3.75% and above for users participating in specific programs. This disparity strengthens banks’ competitive concerns.

JPMorgan CEO Jamie Dimon demanded “fair and equal” regulation, stating that stablecoins are not subject to the same oversight, regulation, and user identity tracking requirements as banks.

The GENIUS Act, which went into effect last year, prohibits stablecoin issuers from offering direct yields to users. In contrast, it remains uncertain whether exchanges can provide indirect rewards through transaction usage or distribution fees. The American Bankers Association (ABA) wants this area to be more clearly restricted with the Clarity Act, while the Crypto Council for Innovation argues that the regulation has already been resolved.