Opposition by U.S. banks to the CLARITY bill could weaken their own position, a16z crypto policy head and general counsel Miles Jennings said. He argued that the GENIUS Act is already in force and has accelerated on-chain dollar movement, with other real-world assets likely to follow regardless of CLARITY. If CLARITY fails, he said, stablecoin deposit yield structures banks oppose would remain. Banking groups have urged stricter bans on interest-like rewards for holding stablecoins.

A U.S. banking industry lobbying group has voiced support for passage of the Clarity Act, a cryptocurrency regulation bill, while urging revisions to some stablecoin provisions. American Bankers Association CEO Rob Nichols said the bill contains many positive elements but needs limited changes related to stablecoins and community lending. Banks say yield-bearing stablecoins could erode deposits. Lawmakers are pushing to advance the bill before the August recess as debate narrows to stablecoin yields and competition with bank deposits.