CLARITY Act Markup Raises Stakes in Stablecoin Banking Clash

"Senator Bernie Moreno (R-Ohio), a member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, said May 11 on X that bank opposition to stablecoin legislation had intensified before a May 14 committee session. The banking cartel is in full panic mode, he wrote while criticizing the American Bankers Association (ABA) for seeking immediate engagement from bank CEOs. Moreno described an ABA alert that pushed bank leaders to lobby senators against stablecoin legislation."

"The Ohio Republican rejected the group's warning that lawmakers might not understand risks tied to a stablecoin loophole. He called that framing intellectually dishonest and demeaning, arguing there was no loophole after debate around the GENIUS Act. The senator wrote: For decades, these banks have treated your deposits like their personal piggy bank, paying you next to nothing while lending YOUR money out for massive profits and executive bonuses."

"Moreno also argued that stablecoins could allow everyday Americans to earn real yields on their own money, challenging a banking model built around competition, yields, and control. He framed the dispute as a fight over competition, yields, and control. Stablecoin supporters say the bill could expand competition and improve customer yields."

Senator Bernie Moreno criticized the American Bankers Association and banks for intensifying opposition to stablecoin legislation ahead of a May 14 committee session. He said the ABA sought immediate engagement from bank CEOs to lobby senators against the CLARITY Act. Moreno characterized the dispute as a fight over competition, yields, and control, arguing stablecoins could let everyday Americans earn real yields on their own money. He rejected claims about a stablecoin loophole, saying there was no loophole after debate around the GENIUS Act. He also criticized the tone of the ABA’s warning as demeaning to lawmakers and contrasted it with prior work by Senator Bill Hagerty during GENIUS Act debate.

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