Circle (NYSE: CRCL) stock price is down by 2.22% today, July 14, during pre-market trading. This drop comes as the American Bankers Association warns that passing the CLARITY Act in its current state risks causing deposit flight from small banks as customers chase the yields that are paid on stablecoins.

The pushback by banks comes after President Trump urged Congress to pass the CLARITY bill in honor of Senator Lindsey Graham, who passed on July 12.

US Banking Groups Want Tighter Stablecoin Rules in CLARITY Act

US banking groups have sent a joint letter to the majority and minority leaders of the US Senate, asking them to push for changes in Section 404 of the CLARITY Act.

The banks say that the current language used in this section…