The American Bankers Association warns that the Clarity Act may trigger a "deposit flight" to stablecoins.

According to ChainCatcher, as reported by CoinDesk, the American Bankers Association (ABA) is intensifying its lobbying efforts, urging the Senate to further tighten the stablecoin yield provisions in the Clarity Act. The ABA stated that the current version still allows yield-bearing stablecoins similar to "interest," which could replace insured bank deposits and weaken sources of credit funds such as mortgages and business loans. Although the bill has introduced a compromise that bans stablecoin yields similar to deposit interest, allowing only activity rewards similar to credit card points, several banking industry groups, including the ABA, are still calling to close the so-called "yield loophole" to prevent the stablecoin market value from rapidly expanding from approximately $30 billion to as much as $2 trillion, increasing pressure on the liability side of banks and slowing the broader crypto legislative process.