Senator Bernie Moreno (R-OH) on Monday accused the American Bankers Association (ABA) of being in 'full panic mode' over stablecoin yield provisions in the CLARITY Act. The ABA sent a letter to bank CEOs urging immediate engagement to pressure senators against the proposal, claiming it would cause deposit flight into payment stablecoins and threaten economic stability. Moreno rejected this framing, stating the issue was already debated during the GENIUS Act. The Senate Banking Committee is set to mark up the CLARITY Act on Thursday, May 14. The disputed compromise text bars yield 'economically or functionally equivalent' to deposit interest but permits rewards from bona fide platform activity. Polymarket bettors give the bill a 73% chance of becoming law this year. Patrick Witt of the President's Council of Advisors for Digital Assets criticized the ABA for refusing White House meetings on the yield issue in February. A successful markup would advance the bill to a full Senate floor vote, while a stall could sideline U.S. crypto legislation for the remainder of the session.

Key facts

• Senator Moreno accuses ABA of panic mode over CLARITY Act stablecoin yield.
• ABA CEO sent letter to bank CEOs urging immediate lobbying against stablecoin provisions.
• CLARITY Act markup scheduled for Thursday, May 14 at 10:30 a.m. ET.
• Disputed text bars yield equivalent to deposit interest but allows platform rewards.
• Polymarket gives bill 73% chance of becoming law this year.