US Senate · CLARITY Act · US Congress · U.S. · CoinDesk
Banks escalate stablecoin rewards fight as Senate gears up for a Clarity Act vote
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A broad coalition of U.S. banking groups is urging the Senate yet again to tighten the Clarity Act’s restrictions on stablecoin interest and rewards, escalating a continued fight between the crypto industry and banks over whether companies should be able to pay rewards on stablecoins.
Key facts
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- A broad coalition of U.S. banking groups is urging the Senate yet again to tighten the Clarity Act’s restrictions on stablecoin interest and rewards, escalating a continued fight between the crypto
Summary
Eight U.S. banking groups are urging the Senate to tighten the Clarity Act’s stablecoin reward restrictions, arguing the latest language still leaves room for interest-like payments. Banks are targeting a proposed deposit-flight “circuit breaker,” saying regulators should not have to wait for substantial losses of bank deposits before intervening. The dispute pits banks’ concerns about deposits and lending against crypto advocates’ argument that stablecoin rewards have not been shown to cause deposit flight and that lawmakers have already addressed the issue.