Banking groups say CLARITY Act's stablecoin yield language doesn't go far enough — edits incoming.

A coalition of banking trade groups has flagged that the CLARITY Act's current language on stablecoin yield falls short of an outright prohibition, and plans to submit suggested edits to lawmakers in the coming days.

The pushback signals that traditional finance lobbies want tighter guardrails around yield-bearing stablecoins before the bill advances — a fault line that has complicated earlier stablecoin legislation and could slow this round as well.

How Congress responds to the proposed edits will be a key indicator of whether the CLARITY Act moves forward in its current form or faces another round of substantive revision.