American Bankers Association: Supports passage of the CLARITY Act, but calls for tightening stablecoin reward provisions.
39 minutes ago
American Bankers Association (ABA) President and CEO Rob Nichols said the goal is to strengthen, not block, the passage of the CLARITY Act. He noted that the digital asset industry needs a clear regulatory framework, but a key provision in the bill regarding stablecoin rewards still requires further tightening. Nichols pointed out that the 2025 GENIUS Act already prohibits stablecoin issuers from paying interest or returns to holders; the current controversy centers on whether related parties such as crypto trading platforms can offer interest-like rewards. He warned that if stablecoin wallets use such mechanisms to draw deposits away from banks, it could erode the funding base banks rely on for small business loans, mortgages, and agricultural financing. The American Bankers Association proposes amending relevant language in the bill to ban stablecoin rewards that are "substantially similar" to interest payments, and removing ambiguous wording. Nichols said these changes will not prevent crypto firms from offering other reward programs, but will stop reward mechanisms from evolving into disguised deposit interest. He also stated that the ABA is pushing senators to revise the relevant provisions ahead of the September vote, and believes the U.S. can become both a global banking hub and a global crypto hub—provided clear, consistent regulatory rules are established.
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