The American Bankers Association warns that the Clarity Act could stimulate a "deposit migration" to stablecoins.

CoinFeed reported on May 11 that, according to CoinDesk, the American Bankers Association (ABA) is intensifying its lobbying efforts, urging the Senate to further tighten stablecoin yield provisions in the Clarity Act for Digital Asset Markets. The ABA argues that the current version still allows yield-generating stablecoins that resemble "interest," potentially replacing insured bank deposits and weakening credit sources such as mortgages and business loans. Although the bill has introduced compromises prohibiting stablecoin yields similar to deposit interest, allowing only rewards similar to credit card points, several banking groups, including the ABA, are still demanding the closure of this so-called "yield loophole" to prevent the stablecoin market capitalization from rapidly expanding from approximately $300 billion to as high as $2 trillion, increasing pressure on bank liabilities and slowing down broader crypto legislation.