Leaders in the banking industry are trying to persuade lawmakers to vote against measures that might subject the industry to more competition from the cryptocurrency space.
Sen. Bernie Moreno (R-OH) discussed the issue in a lengthy post on X. “While Americans were celebrating Mother’s Day with their families, the CEO of the American Bankers Association sent a frantic alert to every bank CEO in the country, demanding ‘immediate engagement’ to lobby Senators and kill stablecoins that would finally let everyday Americans earn real yields on their own money,” he wrote.
The letter said, “we believe committee members may not be fully aware of the risks to the economy by the stablecoin loophole,” according to Moreno.
“That’s both intellectually dishonest and simultaneously demeaning,” the senator wrote. “First, there is no ‘loophole.’ This entire issue was litigated during the GENIUS Act debate.”
For decades, these banks have treated your deposits like their personal piggy bank, paying you next to nothing while lending YOUR money out for massive profits and executive bonuses.
During the Biden era, these same banks worked hand-in-glove with @SenWarren and her allies to debank Americans, including President Trump’s own family. They shut down accounts of conservatives, patriots, and anyone who dared challenge the regime, all while regulators applied pressure under schemes like Operation Choke Point 2.0. It wasn’t about risk. It was about political control.
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Now that innovative stablecoins threaten to break their monopoly and give you actual financial freedom? They’re running to Congress again, screaming about “threats to economic growth and financial stability.”
🚨 The banking cartel is in full panic mode. 🚨
— Bernie Moreno (@berniemoreno) May 11, 2026
While Americans were celebrating Mother’s Day with their families, the CEO of the American Bankers Association sent a frantic alert to every bank CEO in the country, demanding “immediate engagement” to lobby Senators and kill… pic.twitter.com/Phd6HsdBXR
Lawmakers in Washington are embroiled in a fiery debate over how to regulate cryptocurrency. The next milestone in this fight is a May 14 vote in the Senate Banking Committee on a bill that would lay out a series of rules for the industry, CNBC reported.
On one side is the banking industry, who seek to dampen competition from other sources. On the other side are crypto companies. In the middle is Congress, which is working to settle a debate over who should control the future of digital money and how much freedom Americans should have when it comes to investing their funds.
The stablecoin issue has been one of the more hotly debated aspects of this conversation. It centers on one question: Should stablecoins and other crypto services be allowed to pay yield in a way that resembles interest on cash or should the government shut this down to protect traditional bank deposits?
The American Bankers Association is pressing members of the Senate Banking Committee to tighten up regulations on stablecoin in the CLARITY Act so that crypto platforms will be prohibited from paying “interest or yield” similar to a bank deposit. They argue that the current iteration of the bill leaves loopholes that might allow firms to route rewards through workarounds instead of direct interest payments, according to the ABA Banking Journal.
🚨UPDATE: Senator Bernie Moreno Calls ABA “BANKING CARTEL” And Says There Is NO Stablecoin “Loophole” In CLARITY Act 🤯🇺🇸🔥
— Diana (@InvestWithD) May 11, 2026
Senator @berniemoreno just FIRED BACK at the banking industry after the @ABABankers launched an aggressive campaign AGAINST the CLARITY Act ahead of… https://t.co/teJgXALNZE pic.twitter.com/4d8YJqzGNM
Stablecoin is a type of cryptocurrency token designed to keep a stable value. They are typically tied to the U.S. dollar and backed by reserves like cash or short-term government securities.
Banking industry leaders contend that allowing stablecoins to bear yields could cost the industry hundreds of billions of dollars as people increasingly invest in the cryptocurrency.
On the other side, pro-crypto lawmakers and industry advocates are arguing that the government should respect the free market and competition, pointing out that it will help consumers in the end. They contend that Congress has no business protecting banks from competing markets by blocking stablecoin rewards that some consumers view as a better fit than near-zero bank interest.
CNBC reported that the bill’s advancement in the banking committee has been seen as a setback for big banks and a victory for free market advocates who argue that the government should take a lighter touch to regulating cryptocurrency.
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