Up to $1 trillion in bank deposits could shift into stablecoins if the CLARITY Act passes with its yield provision intact. That single number explains why American banking groups are lobbying hard against the bill, and why the fight in the Senate has turned ugly.
President Trump has thrown his backing behind a UK-US stablecoin framework developed by the Transatlantic Taskforce for Markets of the Future, a body set up in September 2025. Both governments described stablecoins as "an important vehicle for innovation in digital money" and agreed that properly regulated tokens can smooth cross-border payments and give businesses cleaner regulatory treatment on both sides of the Atlantic.
The technical standard the two countries agreed on matters for anyone actually holding these tokens. Stablecoins must be backed one-to-one with high-quality liquid assets, and in the event of insolvency, token holders get legally protected claims over those reserves ahead of other creditors. That is a meaningful protection, not boilerplate.
The Digital Asset Market Clarity Act cleared the House with bipartisan support in July 2025, then hit a wall in the Senate. The sticking point is a provision that would let digital asset firms offer yield to customers. Banking groups argue the language is too vague and would pull deposits out of traditional accounts, with community and regional banks most exposed since they rely on those deposits to fund lending. Trump has been pressing senators to wrap things up before the August recess.
This article is for informational purposes only and does not constitute financial advice. Crypto assets carry risk; always do your own research before making any investment decisions.
