The American Bankers Association (ABA) is mounting an aggressive lobbying campaign against parts of the Senate Digital Asset Market Clarity Act ahead of a scheduled Banking Committee meeting on Thursday, warning lawmakers that stablecoin provisions in the updated bill could still undermine bank deposits and weaken financial stability.
In a call to arms distributed to banking executives across the country, the ABA asked banks and their employees over the weekend to contact senators immediately to push for tighter restrictions on payment stablecoins in the crypto market structure bill. The group said the latest version of the legislation, after months of bank lobbying, meetings and input, still leaves room for cryptocurrency companies to offer interest-like rewards that could encourage consumers to withdraw money from traditional bank accounts.
The Senate Banking Committee is expected to release updated legislative text on Monday, and lawmakers’ comments and amendments are likely to emerge Tuesday ahead of Thursday’s committee vote on the Clarity Act.
“We need your help to get this message across before senators consider this legislation,” ABA President Rob Nichols said in the request.
The ABA’s campaign follows a joint letter sent last week with other banking trade associations outlining proposed amendments to the bill. The groups argued that lawmakers should close what they describe as a loophole around stablecoin performance before moving forward on legislation.
The dispute has become one of the defining battles in the debate over Washington cryptopolitics. Banking executives and trade groups have argued that yielding stablecoins could function as substitutes for insured deposits, depleting the funds that banks rely on to provide mortgages, commercial loans and other forms of credit.
Supporters of stablecoins, including many crypto companies and financial technology companies, argue that the products offer consumers faster payments and new ways to move money online. Critics of the cryptocurrency industry say banks are trying to preserve their dominance by limiting the way digital dollar products compete for users.
“The banking cartel is in full panic,” U.S. Sen. Bernie Moreno, an Ohio Republican who has been staunchly pro-crypto, posted on social media site X.
The fight previously delayed legislative progress, with lawmakers eventually negotiating a compromise that would ban stablecoin returns that resemble interest on deposits, while allowing activity-based rewards programs similar to credit card points. Even after those changes, major banking groups have continued to pressure Congress to adopt stronger security measures.
While the White House Council of Economic Advisers published an analysis on stablecoins suggesting their implementation would not harm the banking system, ABA economists responded with their own study in April. The banking group argued that the administration focused on the wrong policy issue by analyzing the effects of banning stablecoin performance rather than the consequences of allowing it. According to the ABA, allowing stablecoins with yield could quickly scale the market from around $300 billion today to up to $2 trillion, increasing pressure on bank financing.
The longer negotiations drag on, lawmakers and industry participants warn, the more difficult it will be to get comprehensive crypto legislation through the Senate and onto the floor for a final vote. There are about 10 weeks of time left on the Senate floor before the midterm elections, according to the Senate’s current calendar, and there are many competing interests for that legislative bandwidth.
UPDATE (May 11, 2026, 14:55 UTC): Adds response from Senator Bernie Moreno.
