It is often easy to take the existence and value of banking associations for granted; the work we do day in and day out to defend and advance the industry is rarely glamorous. But occasionally, an issue arises that demonstrates that collective banker efforts, channeled and focused through associations guided by volunteer bank leaders, remain the most effective way to defend our industry.

The congressional debate surrounding the Digital Asset Market Clarity Act, or CLARITY Act, is one such issue. In 2025, Congress passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act, creating a regulatory framework for payment stablecoins. The GENIUS Act prohibits stablecoin issuers from paying interest on payment stablecoins. The CLARITY Act is intended to create a comprehensive federal regulatory framework for digital assets, including payment stablecoins.

At issue for the banking industry is whether the CLARITY Act will clearly prohibit the crypto industry from paying interest or rewards on payment stablecoin assets. If the crypto industry is allowed to skirt the GENIUS Act prohibition regarding paying interest on stablecoins and directly competing against bank deposits (without similar consumer protections or compliance regulations), it is estimated that up to $6.6 trillion in bank deposits could be at risk (up to $2.2 billion in West Virginia alone).

The crypto industry is estimated to have spent between $189 million and $200 million lobbying for CLARITY. Banking associations, including the ABA, WVBA and others, have been unified in supporting the CLARITY Act while forcefully opposing loopholes that would permit interest or reward payments on payment stablecoins, all with fewer financial resources than the crypto industry.

The CLARITY Act is a large and complex bill with many parts subject to negotiation. However, concerns from the banking industry have been widely cited as key reasons why the CLARITY Act has not secured sufficient votes in the U.S. Senate for passage as of September 2026.

It is important to remember why opposition to the interest and reward loophole in banking is significant for legislators. Banking associations have helped ensure our concerns remain politically relevant by coordinating our collective resources in ways few banks could achieve individually.

Some of our strongest advocacy tools include:

• Building long-term trusted relationships with legislators and legislative staff.
• Marshaling banking industry consensus.
• Clearly articulating why banking industry concerns matter to a legislator’s constituents.
• Carefully analyzing and monitoring legislative language and emerging proposals.
• Being present in the room where industry negotiations take place.
• Conducting and publishing research that translates complex legislative language into clear impacts on people and communities.
• Coordinating coalition partners that share the industry’s concerns for businesses and consumers.
• Educating and motivating grassroots and grasstops advocates.
• Creating tools to encourage and facilitate individual banker contact with legislators.
• Speaking, publishing and advertising to educate stakeholders and legislators on how our positions impact Main Street and Wall Street.

The CLARITY Act will eventually be enacted in some form, but success in fully addressing our concerns over interest and rewards on payment stablecoins is far from guaranteed. What is guaranteed is that without the sophisticated and coordinated efforts of banking industry associations, other interested parties would more easily undercut our business model for their gain while harming the communities we serve.