The Digital Asset Market Clarity Act of 2025 (H.R. 3633) is one of the most significant pieces of crypto legislation ever introduced in the United States. The bill passed the House by a sweeping 294–134 bipartisan vote in July 2025 and would establish a comprehensive federal framework dividing oversight of digital assets between the SEC and CFTC. Zero Hedge
Now it faces its biggest test yet — a Senate Banking Committee markup scheduled for May 14, 2026.
Why Is the American Bankers Association Sounding the Alarm?
The ABA is mounting an aggressive lobbying push against portions of the CLARITY Act, warning lawmakers that stablecoin provisions in the updated bill could still undermine bank deposits and weaken financial stability.
Their core fear? Deposit flight into stablecoins.
The banking groups warn that deposit flight driven by the widespread adoption of yield-bearing stablecoins could reduce consumer, small-business, and agricultural lending by one-fifth or more — highlighting the enormous financial stakes involved.
The Emergency Letter: What ABA CEO Rob Nichols Said
In an unprecedented move, ABA President and CEO Rob Nichols sent an emergency Sunday letter — dated May 11, Mother’s Day — to every bank CEO in the country, urging “immediate engagement.” He warned that without further changes, the current proposal would “unnecessarily incentivize the flight of bank deposits into payment stablecoins, putting both economic growth and financial stability at risk.” Zer
Bank leaders were asked to:
- Contact their senators directly
- Mobilize their employees to do the same
- Act before Thursday’s Senate committee vote
The Central Dispute: What Is Stablecoin Yield?
The core sticking point is stablecoin yield. The latest draft — negotiated by Senators Thom Tillis and Angela Alsobrooks — bans yield on passive stablecoin balances but permits activity-based rewards, a distinction the banking lobby says is still too permissive.
In simple terms: banks fear that if crypto companies can offer even limited interest-like rewards on stablecoins, consumers will move their money out of traditional bank accounts — threatening the entire deposit-based lending system.
Crypto Industry Fires Back
The crypto side isn’t staying silent. Coinbase CLO Paul Grewal pushed back publicly, saying “You got ‘idle yield’ killed. I know because I was there — you weren’t. Take yes for an answer.” Senator Bernie Moreno also called the ABA “the banking cartel in full panic mode,” accusing it of misrepresenting the bipartisan compromise already reached.
Meanwhile, a HarrisX survey of 2,008 registered U.S. voters found 52% expressing support for the CLARITY Act, with 47% indicating they would consider voting across party lines for candidates who backed the legislation.
What Happens If the Bill Fails?
The stakes couldn’t be higher. Senators Lummis and Moreno have warned that if the bill doesn’t clear the Senate Banking Committee before the May 21 Memorial Day recess, the next viable legislative window could be pushed to 2030 or beyond. The White House has set July 4 as its target for a presidential signature.
