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Five of the most powerful banking groups in the United States are waging a concerted campaign to derail the CLARITY Act. This comes at a time when lawmakers in the Senate are preparing to have a committee meeting in the week of May 11, with the aim of submitting the law to the desk of President Trump to be signed before the 4th of July.
The American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America issued a statement. He refused them For Telles-Alsoprox solution for stablecoins. The surprising thing here is that the representatives of these parties took part in the same discussion during the discussion that lasted for several months.
MEDICINE STILL REFUSES CLARITY ACT STABLECOIN COMPROMISE
Major U.S. banking groups have said that the new stablecoin arrangement has “slowed down,” even after senators signed off on the deal as final.
The latest agreement will prevent crypto companies from charging interest or issuing just for holding… pic.twitter.com/BNtZZf18KV
– Coin Bureau (@coinbureau) May 5, 2026
The line between traditional finance (TradFi) and advanced finance (DeFi) is clearer than ever in crypto politics. As the CLARITY Act moves forward in the Senate and corporate headquarters monitor all developments, the bank’s recent efforts to undermine stablecoin regulations have set the stage for US economic policy.
Banks say they will cut the money by 20%, but…
The bank’s contract objections are against Section 404 of the CLARITY Act, which governs the limits on refunds used to pay bills. The agreement states that the language of Teles-AlsoProx has cracks, especially regarding the ability of digital platforms to distribute rewards that correspond to the customer’s time, or account balances, even if the rewards are not technically classified as interest.
Internal banking research suggests that alternative stablecoin production methods could generate enough savings to reduce payments to consumers, small businesses, and agriculture by 20%.
On May 6, the American Bankers Association expanded its activities by launching a campaign in Washington, DC, supported by more than 3,000 banks with a total of 2.5 million dollars, in which they describe the methods of returning stablecoins as “uncontrolled theft of deposits.” 200 bank executives are also planning to go to Capitol Hill on May 9 to directly pressure the Senate offices before the amendments on May 10.
The agreement also cites a 2026 report from the Office of the Comptroller of the Currency (OCC) that estimates the risk of flight flight at nearly 300%. one billion dollars by 2028 if Section 404 shares are not blocked, and the Federal Reserve data showing that $120 billion in stablecoin reserves already indicate a return to the money market.
For his part, Senator Tillis, who participated in the drafting of the decision, responded directly, stressing that the people who work in traditional finance have been at the negotiating table for many months, and that the current text prevents the award of a stablecoin that effectively imitates the advantages of bank deposits. The senator said that some parties may simply veto the CLARITY Act in its entirety, and use the argument to return to stablecoins as an excuse to block the project forever.
The crypto industry sees trillions of dollars at stake and a clear impediment to the law
The crypto sector is seeing a clear path for banks to take over. Alex Thorne, head of research at Galaxy Digital, said that Senator Tillis had begun to be criticized by digital economy companies, especially for including banks in the negotiations from the beginning, and that the refusal of the union to cooperate because it revealed a way to block instead of changing incentives.
Galaxy Digital researchers hope that the passage of the CLARITY Act could open the door to $1 trillion in corporate entry by establishing certainties that have kept most of the money from being sold.
Brian Armstrong, the CEO of Coinbase, called the banks’ methods “harmful to the competition,” saying that the production caps would disincentivize the 15 million US stablecoin traders who were already accustomed to using them for payment and settlement.
David Sachs, who is in charge of the crypto file at the White House, said that the responsibility of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration to the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration of the administration to the administration of the administration to the administration of the administration, to the administration of the administration, to the administration of the administration, to the administration of the administration.
Senator Cynthia Lummis, chairwoman of the Senate Digital Assets Subcommittee, made the tough call, saying:
The digital content industry has waited too long. Companies are making decisions about where to integrate and operate now, and without clear rules, many will go upstream.
The banking industry is not fighting a problem, it is fighting a law that can win and change the rules of the game.
A note Banks’ fight against the CLARITY Act: Attempts to undermine the rules of stablecoins appeared for the first time Cryptonews Arabic.