U.S. banking groups are broadening their Senate lobbying against a CLARITY Act compromise that would partly allow interest-like returns on stablecoins. The proposal being coordinated by senators Thom Tillis and Angela Alsobrooks would ban passive yield on stablecoin balances but allow activity-based rewards. The Consumer Bankers Association has challenged a White House-backed analysis on the effects of an interest ban. The White House has criticised banks’ additional lobbying, while the bill’s timetable remains unclear.

U.S. banks have clashed with the White House over whether to allow interest on payment stablecoins, warning it could pull money out of the banking system and weaken local finance. The American Bankers Association publicly challenged a report by the White House Council of Economic Advisers, saying it ignored risks if interest-bearing stablecoins spread rapidly. The dispute comes as the Senate returns to debate the CLARITY Act regulating digital asset market structure.