Six major U.S. banking trade groups issued a statement Friday opposing proposed compromise language in the Clarity Act, arguing it contains loopholes that would allow crypto companies to evade restrictions on stablecoin yield. The groups, representing national and community banks across all 50 states, sent a letter to the Senate Banking Committee expressing concern that exceptions for rewards tied to account balances and governance participation would undermine the intended prohibition on stablecoin yield. The compromise, drafted by Senators Thom Tillis and Angela Alsobrooks, would ban direct yield payments but allow certain rewards, which the banking coalition says could enable evasion through structured programs resembling money market funds or balance-triggered payments.
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