Story perspectives

Banks Reject CLARITY Act Stablecoin Yield, Senators Push Policy

5/5/2026

Summary

Bankers Reject CLARITY

America’s biggest banks remain dissatisfied with the CLARITY Act’s stablecoin-yield language while Senators Thom Tillis and Angela Alsobrooks seek the correct policy goal.
The CLARITY Act passed the House in July 2024 with a 294-134 vote, though bankers fear it may miss November 2026 deadline.
Bankers cite studies warning that stablecoin could trigger trillions in outflows from banks, with White House estimating a ban would raise lending by $2.1 billion (0.02 %).

Summary

Circle Stock Surge

Circle Internet Group’s stock rose 19.89% to $119.53 after Senate compromise, and 95% of revenue comes from USDC reserve interest.
Coinbase rose 6.14% to $202.99, BitGo up 10.26%, Robinhood 4% on the news, while its revenue fell 47% to $134 million, driving a 13.24% stock drop on April 29.
Polymarket gives the CLARITY Act a 64% chance of passing, with Senate Banking markup set for week of May 11 and floor vote June/July.

History

Historical Context

In 2014 Bitfinex launched Tether, the first widely adopted stablecoin, quickly gaining a market cap over $114 billion by August 2024. Persistent doubts about its dollar backing led the U.S. Commodity Futures Trading Commission to fine Tether $41.6 million in October 2021 and prompted ongoing regulatory scrutiny of stablecoins. The legacy of opaque reserves continues to shape U.S. policymakers' efforts to craft clearer rules for digital-currency issuers.

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Bankers Reject CLARITY

America’s biggest banks remain dissatisfied with the CLARITY Act’s stablecoin-yield language while Senators Thom Tillis and Angela Alsobrooks seek the correct policy goal.
The CLARITY Act passed the House in July 2024 with a 294-134 vote, though bankers fear it may miss November 2026 deadline.
Bankers cite studies warning that stablecoin could trigger trillions in outflows from banks, with White House estimating a ban would raise lending by $2.1 billion (0.02 %).

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