The Senate’s Digital Asset Market Clarity Act has stalled due to banking industry opposition to stablecoin yield programs, which they argue could destabilize traditional banking by diverting deposits. Bank lobbyists, including JPMorgan Chase & Co. CEO Jamie Dimon, have pushed back against provisions allowing crypto platforms to offer interest on stablecoins, citing regulatory and economic risks. The bill’s fate hinges on securing 60 Senate votes by mid-September.
The American Bankers Association has intensified its lobbying efforts, urging lawmakers to tighten language around stablecoin rewards to prevent competition with traditional banking services. Jamie Dimon, in a recent interview, warned that allowing such yields would create an “unfair advantage” for crypto firms, a stance echoed by other major banks. Stablecoin yield rates at exchanges like Kraken and Gemini currently range between 3.5% and 3.75%, far outpacing the 0.01% offered by bank savings accounts.
Despite these concerns, the Crypto Council for Innovation maintains that stablecoin yield provisions are “locked” in the legislation and unlikely to change. Rashan Colbert, the group’s U.S. policy director, said the debate had been resolved, though uncertainty remains over whether the GENIUS Act’s existing rules on stablecoin rewards will adequately address “indirect yield” arrangements. The bill faces additional hurdles if Senate Republicans demand further concessions to protect banking interests.
U.S. banks reported $80.5 billion in industrywide profit in the first quarter of 2026, with deposits rising by nearly $400 billion in the most recent quarter. However, there is no evidence yet that stablecoin yields have significantly siphoned deposits from traditional banks, despite the sector’s $300 billion market cap. The Federal Deposit Insurance Corp. will monitor deposit trends closely as the legislative battle unfolds.
Written by Jessica Primrose
Stablecoins Desk
