Eight banking trade groups are pushing back hard on the revised Clarity Act, claiming its so-called deposit flight "circuit breaker" is useless—it only triggers after major damage is already done.

In a letter to Senate leadership, the groups argue the stablecoin rewards language still has loopholes that could allow interest-like payments on stablecoin balances. They're demanding tighter restrictions to close those gaps.

Bottom line: Banks want the rules locked down before stablecoins can compete with traditional deposits.