134 U.S. Bank Executives Urge Senate to Revise CLARITY Act Stablecoin Provisions
2026-07-29 00:07
Odaily Odaily reports that 134 officials and executives from U.S. banking associations and banks are urging the Senate to amend Section 10404 of the CLARITY Act before its final passage, in order to strengthen restrictions on the payment of interest and returns on payment stablecoins.
The banking representatives hope lawmakers will broaden the scope of these restrictions, preventing companies from providing similar economic benefits for holding stablecoins through rewards, incentives, or other arrangements. They argue that if stablecoins can attract and retain balances through interest-like rewards, the funding base supporting local loans could be weakened by hundreds of billions of dollars.
The letter asserts that deposits form the foundation for lending to families, small businesses, farmers, and local employers. The signatories state that clear rules would allow payment stablecoins to develop while preserving access to funding that supports community lending.
The banking representatives hope lawmakers will broaden the scope of these restrictions, preventing companies from providing similar economic benefits for holding stablecoins through rewards, incentives, or other arrangements. They argue that if stablecoins can attract and retain balances through interest-like rewards, the funding base supporting local loans could be weakened by hundreds of billions of dollars.
The letter asserts that deposits form the foundation for lending to families, small businesses, farmers, and local employers. The signatories state that clear rules would allow payment stablecoins to develop while preserving access to funding that supports community lending.
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