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Good morning.
Banks are no longer fighting the Clarity Act on principle; they’re fighting it on the fine print, and Monday’s letter shows the real battle has shifted from whether stablecoins can pay rewards to how early regulators are allowed to notice deposits leaving before the damage is already done.
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In Today’s Edition:
**Headline:Banks Push to Tighten Stablecoin RewardsQuick Bites:Ripple Stablecoin Chief Sees $13T OpportunityYield of the Week:**gUSDC Vault’s 30.39% APY
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HEADLINE
**State of play: **Eight US banking groups urged Senate leaders to tighten the Clarity Act’s stablecoin reward restrictions ahead of Tuesday’s vote, arguing the current draft still lets crypto firms pay interest-like rewards that could pull deposits from banks.
The coalition, including the ABA, Bank Policy Institute, and ICBA, said the bill’s deposit-flight “circuit breaker” only triggers after substantial deposit loss has already occurred.
ICBA asked lawmakers to strip language letting rewards scale with how much a customer holds and for how long, arguing that mimics a savings account.
Treasury Secretary Scott Bessent defended the provision, saying it gives him authority to act if stablecoins harm community banks and called the bill essential to US tech competitiveness.
Federal law already bars stablecoin issuers from paying yield directly but leaves room for rewards through exchanges and other intermediaries.
**What’s Next: **The Senate votes Tuesday, Sept 15 on advancing the Clarity Act, with banks pushing last minute changes to the reward and circuit-breaker language before any final text is locked in.
**Why it Matters: **This is the same fight that has stalled crypto market structure legislation for months, and it shows banks now targeting the bill’s mechanics rather than just its ethics provisions.
**Our Take: **The circuit breaker fight is really banks asking for a tripwire that fires before any deposits actually leave, which is not a safeguard but a veto, and Bessent’s promise to “not hesitate” to use his authority later is doing the political work the statute itself won’t.
QUICK BITES
Ripple stablecoin chiefsees$13T corporate treasury opportunity for RLUSD.WTO headsaysfragmented regulations limit stablecoin international adoption.Banksescalatestablecoin rewards fight as Senate prepares for a Clarity Act vote.
YIELD OF THE WEEK
The vaultaccepts USDC deposits and lends exclusively against Piku ecosystem collateral assets including carry trade and basis trade strategies, with ~$260.07k in total deposits and full liquidity currently available.Capital is fully deployed into the CarryTradeUSDTRYLeverage/USDC market at 62.5% LTV with 100% relative cap, running at 88.12% utilization with a 14.88% market APY.
Yield is generated from lending demand against Piku’s carry trade and structured strategy collateral, delivering a 13.29% net APY after a 10% performance fee and 0% management fee.
The vaultaccepts USDC deposits and issues gUSDC tokens representing ownership in the liquidity pool, acting as the counterparty to all trades on the Gains perpetuals platform, with ~$4.67M in TVL.Capital is deployed as counterparty liquidity to traders on Gains Trade, with gUSDC accumulating trading fees in real-time across all platform trades at a current price of 1.33503 USDC per gUSDC.
Yield is generated from trading fees paid by perp traders on the platform, delivering a 30.39% APY, with withdrawals following an epoch system with the current epoch running until September 15, 2026.
The vaultaccepts PYUSD deposits and lends against blue-chip crypto collateral markets, with ~$302.15k in total deposits and ~$28.67k in available liquidity.Capital is allocated across PAXG/PYUSD (~$143.66k, 47.54% at 91.79% utilization), wstETH/PYUSD (~$117.53k, 38.89% at 91.63% utilization), and WBTC/PYUSD (~$41k, 13.57% at 91.92% utilization).
Yield is generated from lending demand across blue-chip collateral markets, with individual market APYs tightly clustered around 8.83-9.04%, at 0% management and performance fees.
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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.
