ABA Urges Banks to Contact Senators Over Stablecoin Yield Rules in Digital Asset Bill

“I am reaching out to make every bank leader in this country aware of an urgent advocacy fight that requires your immediate engagement,” Rob Nichols wrote.

He warned that without further changes the proposal would unnecessarily incentivize the flight of bank deposits into payment stablecoins, putting both economic growth and financial stability at risk.

M. , with a live video feed of the proceedings available to the public. Committee Chairman Tim Scott confirmed the May 14 markup date last week. The bill passed the House of Representatives on July 17, 2025, by a 294–134 bipartisan vote, with all 216 Republicans supported the bill and 78 Democrats crossed the aisle.

The Senate version of the bill expanded to nine titles covering decentralized finance protections, illicit finance provisions, bankruptcy safeguards for crypto customers, and the Blockchain Regulatory Certainty Act. Committee Chairman Tim Scott originally targeted September 2025 for a Senate floor vote.

Chairman Tim Scott most recently told Fox Business he hoped to bring the bill to the Senate floor by June or July 2026.

Senators Cynthia Lummis and Bernie Moreno warned that failure to clear the Senate Banking Committee before the May 21 Memorial Day recess could push the next viable legislative window to 2030 or beyond. The White House has set July 4 as its target for a presidential signature. 6 trillion in deposit outflows if yield is permitted.

02 percent. Rob Nichols sent a joint letter with 52 state bankers associations to Congress in December urging lawmakers to close the yield loophole. Coinbase Chief Legal Officer Paul Grewal posted on X criticizing the ABA’s letter.

“Maybe the CEO didn’t get the message from the people actually in the room at the WH in meeting after meeting. You got ‘idle yield’ killed. I know because I was there — you weren’t. Take yes for an answer.

Move on. Stop wasting the time of the Senate and the American people,” Paul Grewal wrote. Sen. Bernie Moreno posted on social media calling the banking cartel in full panic mode and accusing it of deceiving lawmakers by characterizing stablecoin yield as a loophole.

Sen. Bernie Moreno stated that the term loophole was an insult to the bipartisan work already done during the GENIUS Act debate. SEC Chair Paul Atkins publicly urged Congress on April 9 to move CLARITY to President Trump’s desk.

Treasury Secretary Scott Bessent published an op-ed in the Wall Street Journal framing the CLARITY Act as a national security matter. ” Senator Lummis said at the Bitcoin Conference in late April: “We are gonna markup the CLARITY Act in May. We are gonna get it to the finish line.