A coalition of 77 state banking associations, supported by the American Bankers Association and the Independent Community Bankers of America, sent a formal request to the US Senate on September 10. The group seeks amendments to the CLARITY Act to prohibit rewards tied to stablecoin balances or holding duration.
The banking lobby specifically targets provisions in Section 10404 of the bill, requesting amendments to subsection (c)(1) and the removal of subsection (3)(B). They argue that current language allows for activity-based rewards that function as interest payments outside the traditional banking system.
The initiative aims to curb programs like the USDC rewards offered by Coinbase. Banking groups contend that stablecoins should serve as transactional tools rather than store-of-value products that compete with savings accounts and potentially reduce credit availability for mortgages and small business loans.
This effort follows a similar appeal made in July 2026 by 76 associations. The addition of one more member to the coalition indicates growing pressure as the Senate approaches a cloture vote on the legislation, which was previously advanced by the Senate Banking Committee in May 2026 with a 15-9 vote.
