US banks seek to revise stablecoin interest deal in CLARITY Act

U.S. banks are attempting to revise a compromise on stablecoin interest payments ahead of the CLARITY Act's markup, according to Eleanor Terrett, host of Crypto in America. The initial agreement reportedly allowed for activity-based rewards, which are crucial for exchanges' stablecoin operations, while restricting interest based on deposit balances—a feature banks have flagged as a risk for deposit outflows. The banking industry has reportedly sent a letter to Senator Thom Tillis and others, arguing that the current compromise does not explicitly mention deposit interest, creating a potential loophole for the crypto industry. They have proposed adding more specific language to the bill. However, Terrett added that the Senate is not viewing this push as a major issue, as the focus of the CLARITY Act has already shifted to ethical concerns, such as conflicts of interest for high-ranking officials. She noted that the banks' effort to amend the stablecoin interest compromise is unlikely to proceed.