Eight banking industry associations: The CLARITY Act's circuit breaker mechanism is not a safeguard

Odaily News: According to crypto journalist Eleanor Terrett, 8 banking trade groups stated that the deposit outflow "circuit breaker mechanism" added in the new version of the CLARITY Act is not an effective safeguard measure, because this mechanism only activates after large-scale deposit outflows have already occurred.

In a letter to Senate leaders, these groups called for further tightening of provisions related to stablecoin rewards, to close loopholes that could allow stablecoin balances to receive interest-like payments.