# Banks Fight Stablecoin Yield Compromise in Senate Bill

**Published:** 2026-06-16T10:41:42.246Z  
**Topic:** Crypto Lending  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/14a66e26-bf94-4f91-8b85-899eb4e52ef9

American Bankers Association urges senators to close a stablecoin yield loophole, citing $6.6 trillion in potential deposit outflows ahead of a key vote.

American Bankers Association CEO Rob Nichols sent an emergency letter to bank CEOs on May 11 urging immediate action against a "stablecoin yield loophole" in the Digital Asset Market Clarity Act [1]. The outreach came days before the Senate Banking Committee scheduled a markup for the bill on May 14 [1]. Nichols warned that without further changes, the proposal would incentivize a flight of bank deposits into payment stablecoins, posing risks to economic growth and financial stability [1].

Banking groups cite a Treasury Department report estimating that stablecoins could lead to $6.6 trillion in deposit outflows if yield is permitted [1]. The White House Council of Economic Advisers countered in April that prohibiting stablecoin yield would increase bank lending by only 0.02%, or roughly $2.1 billion [1][2].

The bill currently includes a compromise negotiated by Sens. Thom Tillis and Angela Alsobrooks that bans passive yield on idle balances while allowing activity-based rewards [1][2]. Coinbase Chief Legal Officer Paul Grewal and Sen. Bernie Moreno argued the banking lobby is opposing a deal that already restricts the yield mechanisms banks feared [1]. Some analysts suggest the industry’s $187 billion in annual interchange and payment-processing fees, rather than lending capacity, is the revenue line actually threatened by stablecoin rails [2].

If the pressure campaign succeeds in sinking the bill, banks could be left facing a rulemaking fight under the GENIUS Act that offers far less protection than the current compromise [2].

## Sources
1. Bitcoin Magazine — [American Bankers Attempt Last Ditch Effort To Kill Crypto Market Structure Bill Regarding Stablecoins](https://bitcoinmagazine.com/news/american-bankers-effort-kill-crypto-bill)
2. American Banker — [Banking lobbyists should take the win on the stablecoin yield ban](https://www.americanbanker.com/opinion/banking-lobbyists-should-take-the-win-on-the-stablecoin-yield-ban)
3. Crowdfund Insider — [Banks “Shooting Themselves in the Foot” Fighting Stablecoin Yield Compromise](https://www.crowdfundinsider.com/2026/05/277403-banks-shooting-themselves-in-the-foot-fighting-stablecoin-yield-compromise/)

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Cite as: TrendWatcher, "Banks Fight Stablecoin Yield Compromise in Senate Bill", https://www.trendwatcher.in/article/14a66e26-bf94-4f91-8b85-899eb4e52ef9