Banking groups are still lobbying for a stablecoin yield ban in the CLARITY Act, even as Senate ethics talks and a tight calendar threaten the bill's path to passage.
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Banking groups are pressing for a stablecoin yield ban in the CLARITY Act, even after a compromise agreement reached earlier this year. The push comes as Senate time dwindles before the August recess, with lawmakers also haggling over ethics and DeFi provisions.
Crypto journalist Eleanor Terrett reported on X that state bankers' association conferences are now focused on engaging lawmakers on the yield question. People familiar with the gatherings said the topic is central to the discussions. JPMorgan CEO Jamie Dimon has vowed to fight the stablecoin yield provision despite the bill clearing markup, according to CoinGape. A source told Terrett the yield issue remains “very much in play,” especially as senators outside the relevant committees learn more about the CLARITY Act.
Senate Republicans are trying to reach a deal with Democrats on ethics and DeFi issues. The next steps also include merging the bill with the Agriculture Committee's text before scheduling a floor vote. The Senate has scheduled last-minute meetings to advance the bill before the August recess, CoinGape reported. Acting Attorney General Todd Blanche met with law enforcement groups this week to address their concerns over the DeFi component.
The odds of President Trump signing the CLARITY Act into law this year have fallen to 48%, according to Polymarket data. That is down from 74% at the start of May, when the Senate Banking Committee advanced the bill after markup. Galaxy Digital has lowered its own odds of passage this year to 60% from 75%, citing the Senate's tight schedule.
Trump’s crypto advisor Patrick Witt has said he is confident Congress could pass the bill by July 4. The stablecoin yield ban would prohibit issuers from paying interest-like returns to holders. Banking groups argue such yields blur the line between stablecoins and deposits. Crypto advocates say the ban would limit innovation and push users offshore.
The calendar is the main obstacle. The Senate still has to merge the bill with the Agriculture Committee’s text, resolve the ethics-DeFi standoff, and hold a floor vote. The July 4 target depends on each of those steps. The Senate has not scheduled a floor vote yet.
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