---
title: "8 Major US Banking Groups Call for Tighter Stablecoin Rules in Clarity Act"
url: https://thecoingazette.com/banks-want-more-trade-groups-demand-stricter-stablecoin-limits-in-clarity-act/
date: 2026-09-14
modified: 2026-09-15
lang: en
author: "Coin Gazette Editorial"
description: "Eight major U.S. banking trade groups are pressing Senate leaders to further restrict stablecoin rewards in the Clarity Act according to Decrypt, warning that the current draft leaves open loopholes..."
categories:
  - "CLARITY Act news"
  - "Crypto News"
  - "Law and Order"
tags:
  - "banks"
  - "Clarity Act"
  - "stablecoin"
  - "US crypto regulation"
image: https://thecoingazette.com/wp-content/uploads/2026/09/Copilot_20260915_153800-1400x933.webp
word_count: 359
---

# 8 Major US Banking Groups Call for Tighter Stablecoin Rules in Clarity Act

Eight major U.S. banking trade groups are pressing Senate leaders to further restrict stablecoin rewards in the Clarity Act according to [Decrypt](https://finance.yahoo.com/economy/policy/articles/banks-want-more-trade-groups-214604796.html), warning that the current draft leaves open loopholes that could enable **interest‑like payments** and siphon deposits away from traditional lenders.

In a letter to Senators **John Thune** and **Chuck Schumer**, the groups said they cannot support the latest revisions, arguing that the bill still permits rewards tied to **how much customers hold or how long they hold stablecoins**—a structure they say mirrors deposit interest.

### Banks Say Loopholes Could Mimic Interest

The coalition, which includes the **American Bankers Association**, **Bank Policy Institute**, and **Independent Community Bankers of America**, warned that the bill’s language “provides loopholes and avenues for the prohibition to be easily evaded,” allowing interest‑like payments on stablecoin balances despite the intended ban.

A key procedural vote on the [Clarity Act](https://thecoingazette.com/tag/clarity-act/) is scheduled for Tuesday, following the release of a revised version of the bill.

### What Banks Want Changed

The trade groups are urging lawmakers to tighten several provisions:

- **Remove “solely”** from restrictions on payments linked to holding stablecoins, which they argue narrows the prohibition too much.

- Replace the bill’s **equivalence standard** with a **“substantially similar”** test to capture incentives that function like interest.

- **Delete language** allowing permissible rewards to depend on balance, duration, or tenure—criteria commonly used to calculate interest.

“These factors contradict the initial prohibition,” the groups wrote, noting that interest payments are typically based on duration, balance, and tenure.

### Concerns About Deposit Flight

Banks argue that interest‑like stablecoin incentives could pull deposits they rely on to fund mortgages, agricultural loans, and small‑business lending. They say community and mission‑driven lenders could be especially vulnerable, though the letter provides **no data** showing such outflows have occurred.

### Opposition to the “Circuit Breaker”

The groups also rejected a proposed **deposit‑flight circuit breaker**, which would allow regulators to act only after substantial outflows. They argue this mechanism is inadequate and fails to prevent harm before it occurs.

“A circuit breaker that activates only after substantial deposit flight has already occurred is not a safeguard at all,” they wrote, urging Congress to prohibit stablecoin rewards that function like interest upfront.