Eight U.S. banking groups urged Senate leaders John Thune and Chuck Schumer to tighten stablecoin reward restrictions in the Clarity Act, warning that exceptions in the bill could allow interest-like payments that draw deposits away from banks. The groups, including the American Bankers Association, the Bank Policy Institute, and the Independent Community Bankers of America, said the current text contains loopholes that could permit payments on stablecoin balances. They requested changes including removing the word “solely,” replacing the equivalence standard with a “substantially similar” test, and deleting language allowing rewards tied to customer balances, terms, or holding periods. The banks argued that such incentives could divert funds from mortgages, agriculture, and small businesses. They also rejected a proposed deposit outflow “circuit breaker,” saying it would activate only after significant outflows had already occurred.