Banking groups reject Clarity Act yield deal
Major US banking associations rejected the Clarity Acts stablecoin yield compromise, splitting publicly from Coinbase and CircleUS banking associations pushed back against the stablecoin yield provisions in the Tillis-Alsobrooks Clarity Act compromise.Coinbase and Circle immediately backed the deal, with Coinbase CEO Brian Armstrong posting “Mark it up” after the text dropped.The split between traditional finance and crypto trade groups is now the central obstacle standing between the Clarity Act and a Senate committee markup. Major US banking associations publicly rejected the stablecoin yield compromise brokered by Senators Tillis and Alsobrooks in the Clarity Act. The banking groups argued the deal introduces systemic risk to traditional financial institutions, warning that yield-bearing stablecoins could drain trillions from the deposit base. Standard Chartered analysts estimated the risk at up to $500 billion in deposit flight by 2028 if an open-ended yield provision were allowed. Coinbase and Circle both backed the compromise immediately after it was announced, urging the Senate Banking Committee to proceed. Coinbase CEO Brian Armstrong posted “Mark it up” after the text dropped, and Chief Legal Officer Paul Grewal said the language preserves activity-based rewards tied to real platform participation. The split between banking associations and crypto trade groups now sits at the centre of