US banks escalate lobbying against CLARITY Act

TLDR

US banking groups are stepping up efforts to slow or reshape the CLARITY Act, the main US crypto market structure bill, largely over rules for stablecoin yields.

1. The CLARITY Act would define SEC and CFTC roles, classify digital assets, and set federal rules for exchanges and stablecoins, but Senate progress is stalled on a tight 2026 calendar.
2. Banks are lobbying hard to curb yield-bearing stablecoins and delay related GENIUS Act rules, arguing they threaten deposits and add systemic risk.
3. For crypto users, this increases the risk of delays or a watered-down bill, making upcoming Senate Banking Committee action and any stablecoin compromise critical to watch.

Deep Dive

1. What The CLARITY Act Would Do

The Digital Asset Market Clarity Act (often shortened to CLARITY Act) is a comprehensive US crypto bill that passed the House in 2025 and is now stuck in the Senate Banking Committee. It would create a statutory split between the SEC and CFTC, set tests for whether a token is a security or commodity, and impose federal registration and consumer protection standards on exchanges and brokers, as described in recent hearings and coverage of the bills path through Congress.

The Act also connects to stablecoin policy by building on the earlier GENIUS Act, aiming to bring stablecoin issuers into a consistent federal framework rather than the current state-by-state patchwork. Treasury Secretary Scott Bessent has urged the Senate to pass this framework, arguing that regulatory clarity is important for US financial leadership and the dollars global role.

2. How Banks Are Pushing Back

Reporting from CoinDesk and others notes that the main holdup in the Senate is Republican Senator Thom Tillis negotiations with bankers over stablecoin rewards programs that can resemble bank deposit yields, which some lawmakers fear could threaten traditional banks business models if not tightly limited.

In parallel, major trade groups such as the American Bankers Association and Bank Policy Institute have asked Treasury and the FDIC to slow or pause key GENIUS Act rulemakings until the OCC finishes its own stablecoin issuer framework, calling the combined proposals extraordinary in scope and complexity and urging extensions of public comment periods. Earlier, the White House reportedly told banking groups to stop trying to kill a separate stablecoin bill, underlining how central bank lobbying has become to the broader crypto regulatory fight.

Together, these actions amount to an effort to restrict which stablecoin yields are allowed and to stretch out implementation timelines, which in turn affects the CLARITY Act negotiations.

3. Impact On Crypto And What To Watch

Analysts at Galaxy Digital put the odds of the CLARITY Act becoming law in 2026 at roughly 50-50, warning that every week of delay compresses the already tight window for committee markup, floor votes, and reconciliation across chambers. At the same time, crypto firms like Coinbase have significantly increased lobbying spend focused on the CLARITY Act and GENIUS Act rules, highlighting how much revenue, especially from stablecoin-related products, depends on the final language.

If banks succeed in slowing or reshaping the package, outcomes could range from no law this year (prolonging the current enforcement-driven regime) to a trimmed version that sharply limits yield-like features on stablecoins while still delivering some market structure clarity.

Conclusion

Escalating bank lobbying around stablecoin yields and implementation timelines is now one of the key variables determining whether the US finally lands comprehensive crypto legislation in 2026. Until the Senate Banking Committee settles the bank-versus-stablecoin compromise, the CLARITY Act remains uncertain, and so does the regulatory environment that will shape US-based exchanges, stablecoin issuers, and institutional adoption.