The backfire logic
Jennings' point is straightforward. The CLARITY Act, if passed, would have addressed the stablecoin yield structure that banks have spent significant political capital to dismantle. But by opposing the bill, the banking lobby ensures that structure stays exactly as it is. The very thing they want gone survives because they killed the bill that would have ended it.
Why the stablecoin yield matters
The stablecoin yield arrangement has been a persistent source of friction between the banking industry and crypto advocates. Banks have lobbied against it, arguing it poses risks to the financial system. Yet their opposition to the CLARITY Act undercuts that position, according to Jennings. The bill, he suggests, was the vehicle to resolve the issue.
The political stakes
Jennings made his case on X, where the crypto policy debate often plays out in real time. His warning is aimed directly at the banking lobby: you're fighting the wrong battle. The
