The U.S. Senate Banking Committee’s passage of the CLARITY Act has ignited a fresh clash between traditional finance and the crypto sector, with banking lobbyists urgently calling for tighter restrictions on stablecoin yields — a move that could directly impact Ripple’s XRP and planned RLUSD stablecoin.
On Wednesday, the committee approved the Crypto Market Structure Act with a 15–9 vote, sending it to the full Senate. Hours later, joint banking trade groups, including the American Bankers Association (ABA), issued a statement demanding that the bill’s ban on “interest-like rewards” for stablecoin holders be “further strengthened.” They argued that without stricter safeguards, deposit-like stablecoin products could siphon funds from traditional bank accounts, weakening lending and harming local economies. The groups did, however, signal openness to limited reward mechanisms for strictly payment-focused stablecoin transactions.
The controversy gained additional heat after crypto commentator Pumpius shared internal ABA messages allegedly showing banks’ concerns that the CLARITY Act would let stablecoin issuers compete aggressively for customer deposits. Pumpius framed the lobbying as a deliberate attempt to “kill XRP and RLUSD,” Ripple’s cross-border payment token and its forthcoming U.S. dollar-pegged stablecoin. While there is no concrete evidence that banks are targeting Ripple specifically, the XRP community has seized on the documents as proof that Ripple’s growing payments infrastructure is unnerving incumbents.
For Ripple, the stakes are high. XRP is already used in Ripple’s liquidity solutions for international settlements, and RLUSD is designed to operate across digital payment networks, directly challenging bank-dominated remittance and settlement systems. Stricter limits on stablecoin yields could hinder RLUSD’s appeal as a payment instrument, potentially softening its competitive edge. The ABA’s statement underscores the deep-seated fear among banks that stablecoins will accelerate the migration of funds away from insured deposits and into crypto-native rails.
The CLARITY Act still faces a full Senate vote and potential amendments. Banking sector representatives said they would continue working with senators “in good faith” to address yield concerns and improve the bill’s chances. The outcome will be closely watched not only by Ripple but by the broader stablecoin market, which has seen rapid growth as a bridge between traditional finance and digital assets.
