US banks urge senators to tighten stablecoin reward limits ahead of May 14, 2026 vote

US banking groups are pressing lawmakers ahead of a May 14, 2026 Senate Banking Committee markup of the Clarity Act and related stablecoin language, arguing that loopholes on stablecoin rewards could pull deposits from insured banks. The American Bankers Association says some reward structures can resemble interest payments even if issuers are barred from paying interest directly. Crypto firms counter that stricter limits could curb innovation and weaken US competitiveness as negotiations continue.