{"id":2585,"date":"2026-07-14T14:56:00","date_gmt":"2026-07-14T14:56:00","guid":{"rendered":"https:\/\/xrpfaucet.site\/?p=2585"},"modified":"2026-07-14T14:56:00","modified_gmt":"2026-07-14T14:56:00","slug":"78-banking-groups-push-senate-to-rewrite-clarity-act-section-404","status":"publish","type":"post","link":"https:\/\/xrpfaucet.site\/?p=2585","title":{"rendered":"78 Banking Groups Push Senate to Rewrite CLARITY Act Section 404"},"content":{"rendered":"<div class=\"crypto-article\">\n<p>\ud83d\udcf0 <strong>Exclusive Crypto News &#038; Analysis:<\/strong> Stay ahead with the latest developments in the cryptocurrency and blockchain space.<\/p>\n<p>\ud83d\udcc8 <strong>Market Update:<\/strong> Real-time price movements, technical analysis, and trading signals.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/assets.beincrypto.com\/img\/dQ0MhRb0GiEGV9dOm0auh28p4-E=\/smart\/97781aacbcfc4ca194c9326adddb0272\" \/><\/p>\n<p><strong>The American Bankers Association, the Independent Community Bankers of America, and 76 state associations sent Senate leaders a set of targeted revisions to the CLARITY Act, which is pending before the Senate.<\/strong><\/p>\n<p>The July 13 letter went to Majority Leader John Thune and Minority Leader Chuck Schumer. It focuses on Section 404.<\/p>\n<h2 class=\"bic-gutenberg-heading wp-heading wp-block-heading\" id=\"h-the-targeted-edits-banks-want-in-the-clarity-act\">The Targeted Edits Banks Want in The CLARITY Act<\/h2>\n<p>Section 404 of the CLARITY Act targets stablecoin yield. It bars<a target=\"_blank\" href=\"https:\/\/beincrypto.com\/lawson-jpyc-stablecoin-payment-trial\/\" rel=\"noreferrer noopener\"> covered parties from paying <\/a>returns solely for holding payment stablecoins or for providing a yield equivalent to bank deposit interest. It preserves activity-based rewards tied to transactions or platform use.&nbsp;<\/p>\n<p>The signers propose narrow changes to the section, plus a printed markup of the amended text. They want lawmakers to:<\/p>\n<ul class=\"bic-gutenberg-list wp-list list-disc \">\n<li>Remove the word &ldquo;solely&rdquo; from subsection (1)(A).<\/li>\n<li>Cut the phrases &ldquo;on a payment stablecoin balance&rdquo; and &ldquo;on an interest-bearing bank deposit&rdquo; from (1)(B).<\/li>\n<li>Replace the &ldquo;economically or functionally equivalent&rdquo; test with a &ldquo;substantially similar&rdquo; standard, wherever it appears in Section 404.<\/li>\n<li>Delete subsection (3)(B)in its entirety.<\/li>\n<\/ul>\n<p>The bankers say these would stop firms from engineering incentives that dodge the ban. They also argue that the rewards subsection works against the prohibition it sits beside.<\/p>\n<p><strong><em><a target=\"_blank\" href=\"https:\/\/go.beincrypto.com\/beincrypto-X\" rel=\"noreferrer noopener\">Follow us on X<\/a> to get the latest news as it happens&nbsp;<\/em><\/strong><\/p>\n<h2 class=\"bic-gutenberg-heading wp-heading wp-block-heading\" id=\"h-banks-warn-of-deposit-flight-risk\">Banks Warn of Deposit Flight Risk<\/h2>\n<p>The groups said that they back responsible innovation and a well-regulated digital asset marketplace but want firmer guardrails. In the letter, the bankers expressed concerns regarding the current language in Section 404.<\/p>\n<blockquote class=\"max-w-xl text-4.5 border-l-2 border-blue-600 pl-11 mb-9 select-all (&amp;_p):!mb-0 wp-block-quote quote-solid is-layout-flow wp-block-quote quote-solid-is-layout-flow\">\n<p>&ldquo;In particular, we remain concerned that ambiguities within the bill could encourage stablecoin arrangements to effectively function as substitutes for deposits, despite Congress&rsquo;s longstanding and clearly stated intent that payment stablecoins should serve as transaction tools rather than store-of-value products,&rdquo; the association <a href=\"https:\/\/www.aba.com\/-\/media\/documents\/letters-to-congress-and-regulators\/jointltrclarity20260713.pdf?rev=372b2ea3e82d4813b78db92cb0e6023c\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">said<\/a>.<\/p>\n<\/blockquote>\n<p>The banking groups say the risk of deposit flight is concrete, not hypothetical. When local deposits shrink, so does the money banks recycle into their own towns.<\/p>\n<p>Those deposits fund home loans, small-business credit, and financing for farmers. The letter frames that lending is the engine behind local growth.<\/p>\n<p>Five US banking lobbies made similar <a target=\"_blank\" href=\"https:\/\/beincrypto.com\/banks-stablecoin-yield-clarity-act-language\/\" rel=\"noreferrer noopener\">arguments in an earlier letter <\/a>this year. This round sharpens the specific statutory fixes.<\/p>\n<p>The stablecoin yield is one of three key disputes stalling the bill. Lawmakers remain split over Section 604 <a target=\"_blank\" href=\"https:\/\/beincrypto.com\/clarity-act-section-604-backlash\/\" rel=\"noreferrer noopener\">developer protections and ethics rules.<\/a><\/p>\n<p>President Trump has <a target=\"_blank\" href=\"https:\/\/beincrypto.com\/trump-clarity-act-china-warning-deadline\/\" rel=\"noreferrer noopener\">pushed senators to move<\/a> quickly. At the same time, <a target=\"_blank\" href=\"https:\/\/beincrypto.com\/noble-clarity-act-law-enforcement-endorsement\/\" rel=\"noreferrer noopener\">two groups, NOBLE <\/a>and a federal law enforcement<a target=\"_blank\" href=\"https:\/\/www.fleoa.org\/pages\/FLEOA-Supports-H-R-3633-While-Recommending-Targeted-Refinements-to-Preserve-and-Strengthen-Federal-Law-Enforcement-Protections-xmxQRddy\" rel=\"noreferrer noopener\"> association<\/a>have backed the bill despite the open fights.<\/p>\n<p>The Senate faces a narrow window before the August recess. Whether leaders can settle the stablecoin, developer, and ethics disputes in that window remains unclear.<\/p>\n<p><strong><em><a target=\"_blank\" href=\"https:\/\/go.beincrypto.com\/beincrypto-youtube\" rel=\"noreferrer noopener\">Subscribe to our YouTube<\/a> channel to watch leaders and journalists provide expert insights<\/em><\/strong><\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<\/div>\n<\/figure>\n<p>The post <a href=\"https:\/\/beincrypto.com\/bankers-clarity-act-stablecoin-yield-letter\/\">78 Banking Groups Push Senate to Rewrite CLARITY Act Section 404<\/a> appeared first on <a href=\"https:\/\/beincrypto.com\">BeInCrypto<\/a>.<\/p>\n<p>\ud83d\udca1 <strong>Pro Tip:<\/strong> Bookmark our site for daily insights, market predictions, and expert trading strategies.<\/p>\n<p>\ud83d\udd17 <strong>Explore More:<\/strong> Check our sections for in-depth guides, exchange reviews, and blockchain technology deep-dives.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\ud83d\udcf0 Exclusive Crypto News &#038; Analysis: Stay ahead with the latest developments in the cryptocurrency and blockchain space. \ud83d\udcc8 Market Update: Real-time price movements, technical analysis, and trading signals. The American Bankers Association, the Independent Community Bankers of America, and 76 state associations sent Senate leaders a set of targeted revisions to the CLARITY Act, &hellip;<\/p>\n","protected":false},"author":1,"featured_media":2586,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","footnotes":""},"categories":[10],"tags":[],"class_list":["post-2585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=\/wp\/v2\/posts\/2585","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2585"}],"version-history":[{"count":0,"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=\/wp\/v2\/posts\/2585\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=\/wp\/v2\/media\/2586"}],"wp:attachment":[{"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xrpfaucet.site\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}