White House reporter at Semafor Eleanor Mueller shared a joint letter on September 14 that put the CLARITY Act’s stablecoin language under fresh scrutiny. Eight of America’s most powerful banking trade associations signed it.
They sent it directly to Senate Majority Leader John Thune and Minority Leader Charles Schumer, one day before the Senate cloture vote.
A Unified Banking Voice
The signatories include the American Bankers Association, which tried to fight Ripple’s banking license, the Bank Policy Institute, the Consumer Bankers Association, the Financial Services Forum, the Independent Community Bankers of America, the Mid-Size Bank Coalition of America, the National Bankers Association, and the Association of Military Banks of America. Together they represent depository institutions serving hundreds of millions of American consumers.
Inbox: Just about every banking group has joined forces on a letter explaining why the latest text of the Senate crypto bill doesn't do enough to address their concerns over stablecoin yields.
"A circuit breaker that activates only after substantial deposit flight has already… pic.twitter.com/8T6NCAErcd
— Eleanor Mueller (@Eleanor_Mueller) September 14, 2026
The Stablecoin Yield Problem
The banking groups support the CLARITY Act’s goal of prohibiting yield on payment stablecoins. They’re concerned the current text leaves loopholes. They argue the bill’s existing language allows interest-like payments to reach stablecoin holders through creatively structured incentives.
The groups also take issue with the bill’s deposit-flight circuit breaker mechanism. The letter states: “A circuit breaker that activates only after substantial deposit flight has already occurred is not a safeguard at all.” They want Congress to address the risk before harm reaches banks, borrowers, and communities.
Specific Changes Requested
The letter requests two targeted amendments to Section 10404. The groups ask Congress to remove the word “solely” from subsection (1)(A) and replace the “functional and economic equivalence” standard with a “substantially similar” test. They also want Section 10404(3)(B) removed entirely, arguing it contradicts the prohibition by allowing rewards calculated by reference to balance, duration, and tenure.
Strong Support From Wall Street and Law Enforcement
The banking groups are not opposing the bill outright. They explicitly support the Senate advancing it and push for refinements before final passage. On that front, the bill has attracted substantial backing from major financial institutions. BlackRock, Fidelity, Franklin Templeton, Goldman Sachs, Charles Schwab, and SoFi all support the legislation.
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Law enforcement has also shifted toward the bill. The National Sheriffs Association and the Majority County Sheriffs Association both dropped their opposition after reviewing the tools the legislation gives law enforcement to fight crime.
What it Means for Crypto Markets
The CLARITY Act establishes which digital assets fall under SEC or CFTC jurisdiction. Passage would give XRP and other crypto assets a clearer legal status in the U.S. That regulatory clarity has been a central focus for the market. With the cloture vote set for today, the bill enters its most critical test.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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