09/16/26

The Senate yesterday failed to advance the CLARITY Act, with cloture on the motion to proceed falling short by a vote of 49–50, below the 60 votes required. All Democrats present voted against advancing the bill, joined by four Republicans: Susan Collins (Maine), Josh Hawley (Missouri), Jerry Moran (Kansas) and Thom Tillis (North Carolina). Tillis switched his vote to “no” as a procedural step to preserve the ability to seek reconsideration. The result stalls the digital asset legislation and leaves its path forward uncertain.

Disagreements over ethics protections, particularly those addressing President Trump’s cryptocurrency interests, were central to Democratic opposition. Separately, the banking industry’s concerns about stablecoin yield remained unresolved.

For Ohio banks, the outcome provides another opportunity to strengthen protections for local lending. We support a comprehensive regulatory framework for digital assets, but the legislation must address the stablecoin interest loophole. Allowing crypto platforms to offer interest-like payments on stablecoin balances risks drawing deposits away from community banks and reducing the funding available for loans to Ohio families and businesses.

Our proposed solution would preserve rewards tied to transactions and genuine payment activity, much like credit card rewards, while prohibiting payments that function as interest simply for holding a stablecoin balance. Payment stablecoins should serve as payment tools without becoming deposit substitutes that avoid the responsibilities banks fulfill.

While there is relief that legislation with inadequate stablecoin protections did not advance, yesterday’s vote also postponed an opportunity to pursue stronger language on the Senate floor. We appreciate the lawmakers on both sides of the aisle who have recognized the importance of protecting community bank deposits and local credit availability.

OBL will continue advocating for a workable path forward that closes the yield loophole, protects consumers and establishes fair, consistent rules. The objective remains getting the framework right—and ensuring that digital asset innovation strengthens, rather than undermines, the communities our members serve.