U.S. banking groups are widening their lobbying targets in the Senate after opposing a compromise in talks over the CLARITY Act that would partly allow interest payments on stablecoin returns.

On April 18, blockchain outlet BeInCrypto reported that banking groups have begun conveying their opposition to multiple members of the Senate Banking Committee, going beyond the existing main negotiation channel.

At issue is a compromise being coordinated by Senators Thom Tillis and Angela Alsobrooks. It is said to ban passive yield on stablecoin balances while allowing activity-based rewards. The banking sector, however, believes even this limited allowance could shift existing deposits outside traditional finance.

The clash between the banking sector and the White House is also intensifying. The Consumer Bankers Association (CBA) put forward economist Andrew Nigrinis to rebut a report released on April 8 by the White House Council of Economic Advisers. That report estimated that even if stablecoin interest payments were banned, the effect of increased bank lending would be limited to $2.1 billion. It also estimated the ban would impose a net cost of $800 million on consumers.

A CBA-backed report offered a different conclusion. It argued that risks could grow if the stablecoin market capitalization exceeds $300 billion. The American Bankers Association (ABA) separately warned of possible deposit outflows of up to $6.6 trillion. Banking groups are now focused on expanding opposition within the Senate over the unreleased compromise language.

The White House is openly criticising these moves by the banking sector. Patrick Witt (패트릭 위트), executive director of the White House President’s Advisory Council on Digital Assets, said additional lobbying by banks is hard to explain as anything other than greed or ignorance, adding: "Stop it." The White House has previously criticised banks for blocking stablecoin legislation.

The bill’s timetable is also uncertain. Tillis said about whether the compromise would be made public: "It is still going back and forth as we coordinate." Alsobrooks said the release timing would "probably" be next week.

If the CLARITY Act fails to clear the Senate Banking Committee within April, the chances of passage within 2026 could fall. The central variable in handling the bill is the dispute over how far to allow stablecoin yield offerings and what effect that scope could have on fund flows between bank deposits and the digital asset market.

Latest on stablecoin talks: Some banking trade associations have begun taking their concerns about the latest version of a Tillis-Alsobrooks yield compromise to other senators on the Senate Banking Committee, broadening an aggressive lobbying push on unreleased text pic.twitter.com/iycWdeR1oX