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Hawley opposes CLARITY Act; stablecoin yield rule splits Senate GOP
Sen. Josh Hawley opposes the CLARITY Act over stablecoin yield rules he says threaten community banks. His defection tightens a 53-seat GOP majority that needs 60 votes to pass the crypto bill before the August recess.
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Senator Josh Hawley will vote against the Digital Asset Market Clarity Act of 2025, breaking with most of his party. The Missouri Republican said the bill does not protect community banks from deposit flight driven by stablecoin reward programs.
The CLARITY Act passed the House 294-134 and cleared the Senate Banking Committee 15-9 on May 14, 2026. Senate Majority Leader John Thune wants a floor vote before the August recess. The bill needs 60 votes to break a filibuster. Republicans hold 53 seats. Hawley's defection narrows that margin.
Hawley's argument centers on how stablecoin rewards could pull deposits from small-town banks. If a crypto platform offers yield for holding stablecoins, depositors might move money out of local credit unions and into digital wallets, he said. Community banking groups including the Independent Community Bankers of America have made the same case for months.
The May 2026 version of the bill tried to solve this. Lawmakers added language that prohibits passive, deposit-like interest on stablecoins while allowing activity-based or transaction-based rewards. Hawley and community banking advocates said the distinction is meaningless – any reward structure could function as de facto deposit interest in practice.