The American Bankers Association (ABA) is waging an aggressive lobbying campaign against parts of the Senate Digital Asset Market Clarity Act ahead of a planned review by the Banking Committee on Thursday, warning lawmakers that stablecoin provisions in the updated bill could further undermine bank deposits and weaken financial stability.
In a call to arms broadcast to bank executives across the country, the ABA this weekend called on banks and their employees to immediately contact senators to push for tighter restrictions on payment stablecoins in the proposed crypto market structure bill. The group said the latest version of the legislation – after months of lobbying, meetings and input from banks – still leaves room for crypto companies to offer interest-style rewards that could encourage consumers to withdraw money from traditional bank accounts.
The Senate Banking Committee is expected to release updated legislation as early as Monday, with comments and amendments from lawmakers likely to appear Tuesday ahead of Thursday’s committee vote on the Clarity Act.
“We need your help to get this message out before senators consider this legislation,” ABA President Rob Nichols said in the request.
The ABA’s campaign follows a joint letter sent last week with other banking trade associations that outlined proposed changes to the bill. The groups argued that lawmakers need to close what they describe as a loophole around stable coin yield before moving forward with legislation.
The dispute has become one of the defining battles in the crypto policy debate in Washington. Bank executives and trade groups have argued that yield-producing stablecoins could serve as substitutes for insured deposits, draining the funds that banks rely on to extend mortgages, commercial loans and other forms of credit.
Supporters of stablecoins, including many crypto firms and fintech companies, say the products offer consumers faster payments and new ways to move money online. Critics of the crypto industry say banks are trying to preserve their dominance by limiting competition among digital dollar products for users.
“The banking cartel is in a panic,” U.S. Sen. Bernie Moreno, a staunchly pro-crypto Ohio Republican, said on the social media site X.
The fight had previously delayed legislative progress, and lawmakers ultimately negotiated a compromise that would ban stablecoin yield resembling deposit interest while allowing activity-based rewards programs similar to credit card points. Even after these changes, major banking groups continued to pressure Congress to impose stricter safeguards.
While the White House Council of Economic Advisers released an analysis on stablecoins suggesting their deployment would not damage the banking system, ABA economists responded with their own study in April. The banking group argued that the administration had focused on the wrong policy issue by analyzing the effects of banning stablecoin yield rather than the consequences of allowing it. According to the ABA, allowing yield stablecoins could quickly grow the market from around $300 billion today to $2 trillion, increasing pressure on bank funding.
The longer negotiations drag on, lawmakers and industry players warn, the harder it could become to get comprehensive crypto legislation through the Senate and onto the floor for a final vote. There are about 10 weeks of Senate floor time left before the midterm elections, according to the current Senate calendar, and there are many competing interests for this legislative stripe.
UPDATE (May 11, 2026, 2:55 p.m. UTC): Adds response from Senator Bernie Moreno.
