North Carolina Bankers Go Full FUD Mode Against Stablecoin Yield in CLARITY Act CATEGORY: Industry News

The North Carolina Bankers Association has cranked its lobbying machine up to eleven, urging member banks to flood Sen. Thom Tillis's office with calls ahead of a Senate Banking Committee markup on the CLARITY Act. The trade group blasted out an internal email featuring a pre-written script for bank employees, demanding what it describes as "an airtight prohibition" on yield linked to holding payment stablecoins. A brave soul from a small Wilmington-based bank apparently leaked the email, which also took aim at carve-outs for loyalty programs and nominal transaction activity. The script reportedly told employees they didn't need to field questions or defend positions—just recite the talking points and hang up. Apparently, thinking was also on the chopping block.

The lobbying offensive arrives as senators wrestle with a stablecoin yield dispute that has stalled the legislation like a transaction stuck in mempool limbo. Tillis and Sen. Angela Alsobrooks cooked up a compromise back in March that bans passive yield but permits activity-based rewards tied to actual transactions. Banks are howling that these carve-outs still amount to a de facto yield on stablecoin holdings, potentially triggering a deposit flight from traditional institutions. The NC Bankers Association dismissed the current compromise language as inadequate armor against such an exodus.

Meanwhile, a White House Council of Economic Advisers report threw some cold water on the banking industry's favorite doomsday scenario, estimating that full yield allowance would displace just $2.1 billion in lending—clocking in at a whopping 0.02% of total loans nationwide. The CLARITY Act cleared the House 294-134 back in July 2025, and the Senate Banking Committee markup remains targeted for late April, though insiders suggest the schedule is more "suggestion" than "commitment."