Senator Vows to Break the Cartel as Banks Panic Over Crypto Yields

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In a moment that sounds suspiciously like a late-night show monologue, Senator Bernie Moreno declared the U.S. banking lobby is in full-on panic mode about CLARITY Act stablecoin yields. The American Bankers Association is basically pinging every bank CEO with a “please panic responsibly” memo, urging them to push senators away from the provisions.

The Ohio Republican sits on the Senate Banking Committee and didn’t hold back on X before Thursday’s CLARITY Act markup, which is basically a grown-ups’ version of a group chat with higher stakes and fewer emojis.

ABA Letter Targets CLARITY Act Stablecoin Yield Language

ABA CEO Rob Nichols fired off a Sunday letter to every bank CEO in the country, calling for “immediate engagement” on stablecoin yield policy. Translation: assemble the board, pretend this is totally normal, and maybe bring snacks.

Nichols warned that the current proposal would prompt deposit flight into payment stablecoins, citing risks to growth and stability. His note described what banks call a stablecoin loophole in the committee’s draft. It’s like discovering a loophole in a gym contract, but the treadmills crash you into the wall of financial panic.

30 a.m. ET. Polymarket bettors now give the bill a 73% chance of becoming law this year. Because nothing says “legislative urgency” like a wall of betters predicting policy outcomes on the internet.

Senators Thom Tillis and Angela Alsobrooks brokered the disputed compromise text. It bars yield “economically or functionally equivalent” to deposit interest, while still allowing rewards from bona fide platform activity. It’s the kind of compromise that sounds like a salad with croutons labeled as “economic stability.”

Patrick Witt of the President’s Council of Advisors for Digital Assets called out the bank lobby. He said the ABA refused White House meetings on the yield issue back in February. Cold dinner, hot take, zero apologies.

“I specifically requested the attendance of Mr. Nichols and other bank trade CEOs at the meetings we hosted back in February to resolve the stablecoin rewards/yield issue. They refused. I guess the White House was beneath them? In their defense, I wouldn’t want to have to defend their position in public either,” he said.

A successful markup would advance the bill toward a full Senate floor vote. A stall could sideline U.S. crypto legislation for the rest of the session. It’s not a cliffhanger, it’s a capitol-hill cliff with slightly more spreadsheets.

Moreno said he plans to vote to break the cartel.

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2026-05-11 20:21