Associations Urge Senate to Strengthen Stablecoin Yield Provisions in Clarity Act

Posted: Jul 15 2026

NDBA and ICBND joined with the ABA, ICBA and 74 other state associations representing thousands of community financial institutions across the U.S. in a letter to Senate leaders, expressing concerns with the Clarity Act and urged targeted changes to provide greater certainty that payment stablecoins cannot function as substitutes for bank deposits.

In the letter, the associations expressed support for responsible innovation and a well-regulated digital asset marketplace while emphasizing the need for clear and enforceable guardrails around stablecoin interest, yield and reward programs. They noted that engagement with lawmakers and regulators has led to meaningful improvements in the legislation, including efforts to address the industry’s concerns.

“At the same time, significant questions remain regarding whether the current language in Section 404 provides sufficient clarity and certainty to achieve that objective,” the associations said. “In particular, we remain concerned that ambiguities within the bill could encourage stablecoin arrangements to effectively function as substitutes for deposits, despite Congress’s longstanding and clearly stated intent that payment stablecoins should serve as transaction tools rather than store-of-value products.”

To view the letter, visit: https://www.aba.com/-/media/documents/letters-to-congress-and-regulators/jointltrclarity20260713.pdf?rev=03ad9a989e674a249a659b8cd8960002