Banks Want More: Trade Groups Demand Stricter Stablecoin Limits in Clarity Act
Eight banking trade groups urged Senate leaders to tighten the Clarity Act’s stablecoin reward rules, warning that current language leaves loopholes for interest-like payments that could pull deposits away from banks. The groups, including the ABA, Bank Policy Institute, and ICBA, said they oppose revisions that still allow rewards tied to stablecoin balances, holding periods, or tenure. They want to remove “solely” from the prohibition, replace an “equivalence” test with a broader “substantially similar” standard, and delete language permitting rewards based on balance, duration, or tenure. They also rejected a proposed “circuit breaker” that would let regulators act only after major deposit flight. Banks argue such incentives could reduce funding for mortgages, farms, and small businesses, while crypto समर्थकों say stablecoin rewards should remain available and the bill should provide clearer federal rules.
