Stablecoin bill could slip into May as bank lobbying intensifies

The stablecoin bill could miss its expected April review as banks press Congress to tighten rules on yield-bearing tokens.

Senate timing gets tighter

The Senate Banking Committee is weighing whether to mark up the measure the week of April 27. However, the calendar is already crowded, with the hearing for Kevin Warsh, President Donald Trump’s Federal Reserve chair nominee, set to compete for attention.

That schedule leaves lawmakers with less room to settle the remaining disputes. The debate now sits at the center of the broader crypto regulation update in Washington.

Banks push back on yields

Banking groups, including the North Carolina Bankers Association and the American Bankers Association, are urging revisions to the bill’s limits on rewards for stablecoin holders. Moreover, they argue that yield bearing stablecoins could draw deposits away from the traditional banking system at scale.

The industry case is in direct tension with a recent report from the White House Council of Economic Advisers, or CEA. The report said banning yields would raise bank lending by only about $2.1 billion, or roughly 0.02% of a $12 trillion loan book. It also estimated a net consumer welfare cost of about $800 million.

White House pushes back

White House crypto adviser Patrick Witt challenged the banks’ argument, saying lawmakers should not delay the measure based on claims that conflict with the administration’s own data. That said, the dispute has become a central stablecoin yield debate as Congress weighs how far to go on consumer rewards.

Senator Thom Tillis, who is helping negotiate the stablecoin language, may still hold another in-person session with industry participants. However, that could push the process further into May even if it helps narrow the remaining gaps.

Other issues remain unresolved

Beyond yields, the measure still faces objections over decentralized finance rules, conflicts of interest and ethics rules for lawmakers trading tokens. The broader bank lobbying pressure also reflects a wider fight over how the us stablecoin bill should balance innovation and deposit protection.

Even if the stablecoin bill clears the Senate Banking Committee in late April or May, it still must be reconciled with a House version before reaching President Trump for a final decision. In practice, that leaves the path forward open but uncertain.

For now, the schedule, the policy split and the banking pushback all point to a slower path for the legislation.