Major U.S. banking trade groups have expressed concerns that stablecoin offerings could divert deposits from traditional banks, potentially weakening lending activities. This warning follows the Senate Banking Committee's advancement of the CLARITY Act with a 15–9 vote. In a joint statement, organizations including the American Bankers Association and the Bank Policy Institute supported the establishment of a regulatory framework for digital assets but urged lawmakers to impose stricter controls on stablecoin rewards and incentives. The banking groups emphasized that without stronger regulations, stablecoins might attract funds away from banks, threatening local lending and economic activity. They highlighted the risk of deposit migration as a central issue in the ongoing debate over stablecoin regulation. While banks support the creation of a digital asset framework, they advocate for tighter restrictions on "interest-like rewards" associated with stablecoins to prevent potential disruptions in the financial system.