Woofun AI reports that the American Bankers Association and the Independent Community Bankers of America are urging the Senate to strengthen stablecoin yield restrictions within the CLARITY Act. Banking entities argue current provisions fail to eliminate incentives for class yields, despite the bill's prior passage by the Senate Banking Committee with a 15-9 vote on May 14, 2026, which included amendments from Senators Thom Tillis and Angela Alsobrooks.

The Independent Community Bankers of America estimates that without enhanced yield limits, stablecoins could trigger $1.3 trillion in deposit losses and reduce community bank lending capacity by $850 billion. This contraction would impair credit access for small businesses, agriculture, and families in underserved regions.