Banking Lobby Launches Final Push to Block Crypto Stablecoin Bill in Senate Vote

The American Bankers Association (ABA) has escalated its opposition to the Digital Asset Market Clarity Act with an emergency letter sent to every bank CEO in the U.S. on May 11, urging immediate action to block what it calls a "stablecoin yield loophole."

The letter, issued by ABA CEO Rob Nichols, called for bank leaders to contact their senators and mobilize employees before the Senate Banking Committee’s executive session on the bill, scheduled for May 15. Nichols warned that the current proposal "would unnecessarily incentivize the flight of bank deposits into payment stablecoins, putting both economic growth and financial stability at risk."

Senate to Vote on Crypto Regulation Framework

On May 9, the Senate Banking Committee announced plans to mark up H.R. 3633, the Digital Asset Market Clarity Act of 2025—a bipartisan bill aimed at establishing a federal regulatory framework for digital assets. The legislation would resolve jurisdictional disputes between the SEC and CFTC and set trading rules for crypto markets.

Industry and Lawmakers Clash Over Stablecoin Yield

The ABA’s letter drew sharp criticism from Coinbase Chief Legal Officer Paul Grewal, who posted on X (formerly Twitter) that the banking group’s concerns were unfounded. Grewal stated, "Maybe the CEO didn’t get the message from the people actually in the room at the WH in meeting after meeting. We’ve already had ‘immediate engagement.’ 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."

Sen. Bernie Moreno (R-OH), a member of the Senate Banking Committee, also pushed back, calling the ABA’s characterization of stablecoin yield as a "loophole" an insult to bipartisan negotiations. Moreno declared he would vote to advance the bill, stating: "Innovation, freedom, and the American people will win."

Compromise Reached After Months of Negotiations

Grewal and Moreno’s remarks referenced months of talks, including at least three White House-convened sessions between crypto industry representatives and banking trade groups. These negotiations, led by Sens. Thom Tillis (R-NC) and Angela Alsobrooks (D-MD), resulted in a compromise that bans passive yield on stablecoin balances while allowing certain activity-based rewards.

The ABA and allied banking groups have argued that this framework does not go far enough. Paul Grewal previously called the compromise "decent" at Consensus Miami on May 7, criticizing the banking sector’s continued opposition as "sour grapes."