The banking sector is divided over the stablecoin yield rules proposed in the CLARITY Act, with large retail banks opposing the current compromise while others show support. Critics argue that the draft leaves loopholes that could allow reward structures mimicking interest on holdings, potentially leading to deposit flight. As the Senate Banking Committee prepares for a markup, banks are intensifying lobbying efforts, highlighting ongoing tensions despite claims of consensus among lawmakers. The disagreement has exposed clear fault lines within the industry. Large consumer-facing banks remain dissatisfied with the draft language, while institutions without retail operations appear more comfortable. Community banks are split, with their main representative body, the Independent Community Bankers of America, expressing concerns. Critics argue that the proposal fails to fully prohibit yield and interest on stablecoins, warning that reward structures tied to balance or duration could still encourage idle holdings. With unresolved tensions, banks are expanding their outreach to more Senate Banking Committee members, beyond initial discussions with Senators Thom Tillis and Angela Alsobrooks. Despite lead negotiators indicating a resolution, industry feedback suggests otherwise, as the divide within banking circles continues to shape the legislative process.