U.S. Banks Reject CLARITY Act Stablecoin Yield Compromise Ahead of May 14 Senate Markup

U.S. banks are mounting a last-minute push against the CLARITY Act as the Senate Banking Committee prepares a markup on May 14, with five major banking groups jointly rejecting the Tillis-Alsobrooks stablecoin yield compromise.

“White House adviser Patrick Witt said it's possible the Clarity Act becomes law by July 4 while Senator Kirsten Gillibrand pushed for an ethics provision in the market structure bill”

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The American Bankers Association, the Bank Policy Institute, the Consumer Bankers Association, the Financial Services Forum, and the Independent Community Bankers of America said the proposed language leaves “dangerous loopholes” that could trigger deposit flight from traditional banks.

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Senators Cynthia Lummis and Thom Tillis defended the deal publicly, with Lummis posting on X that the finalized bipartisan text is “the culmination of months of hard work to deliver a compromise on yield we can all live with.”

Tillis warned that “Some in the banking industry may not want either of these things to happen,” and said the stablecoin yield debate is being used to stall the legislation indefinitely.

The banking opposition is framed as a fight over whether stablecoin rewards amount to deposit interest under another name, with the coalition pointing to Section 404 of the CLARITY Act as permitting rewards tied to account balances and how long users hold assets.

At Consensus Miami 2026, White House adviser Patrick Witt said it was possible to have President Donald Trump sign the Clarity Act into law by July 4, linking that timeline to a Senate markup and subsequent procedural steps.

CoinDesk’s account of the same event said the timeline would require a markup this month, four weeks for the Senate to merge the Banking and Agriculture bills, and reconciliation with the House before the president signs the bill.

BFM

The CLARITY Act’s movement is also tied to committee scheduling, with the Senate Banking Committee markup hearing confirmed for May 14 at 10:30 am.

A Harrisx national survey released May 7 found 52% of voters support the CLARITY Act after reviewing a policy summary, while 11% oppose it.

The poll also found 70% said the United States should already have passed clear cryptocurrency legislation, and it reported that 64% of respondents said they had not heard of the bill before the survey.

The CLARITY Act debate centers on whether stablecoin incentives can be structured without triggering the bank-focused risk of deposit migration, and the banking coalition argues that yield-earning stablecoins could reduce loans by one-fifth or more.

“Voters showed broad support for the CLARITY Act after Harrisx found 52% backed the crypto market structure bill after reviewing a policy summary of the proposal, while 11% opposed it”

Bitcoin News

In the same dispute, the La Tribune account says the American Bankers Association warns that $6.6 trillion of funds invested in traditional institutions are “in danger” because of the proposal.

For the stablecoin side, the BFM report says the legislation would allow platforms to “verser des intérêts aux détenteurs de stablecoins,” while also describing the Genius Act requirement that stablecoins be fully backed by U.S. dollars and annual audits for issuers whose capitalization exceeds 50 billion dollars.

The political stakes are reflected in the Harrisx survey’s finding that 37% of voters would be more likely to support a senator who votes for CLARITY, while 17% would be less likely, creating a net 20-point benefit.

With the Senate Banking Committee markup set for May 14 and the White House targeting a July 4 signature, the next step in the sources is whether the bill can clear committee and survive the subsequent Senate and House steps before reaching the president’s desk.