On Sunday, American Bankers Association President and CEO Rob Nichols sent an urgent letter to bank CEOs across the country, warning that the current version of the CLARITY Act does not adequately prevent crypto companies from offering interest-like rewards on payment stablecoins.

The American Bankers Association amplified warnings the Senate’s Clarity Act could push deposit flight into stablecoins unless lawmakers tighten yield limits.

A U.S. senator criticized bank opposition to stablecoin legislation before a committee session, saying the American Bankers Association sought “immediate