The American Bankers Association (ABA) is pressing for big changes to the Clarity Act, claiming the crypto market structure bill could put bank deposits at risk of losing ground to stablecoins.
Last week, the Senate Banking Committee announced it had scheduled a new markup session to consider the potential legislation.
Over the weekend, ABA President Rob Nichols fired off an email to all of his member bank chief executives, urging them to contact their respective senators to request that they eliminate provisions in the bill that allow crypto firms to offer stablecoin rewards.
“To be clear, we want Congress to put in place digital asset rules and establish responsible guardrails for the crypto industry. The current version of the legislation, although improved from an earlier version, still does not adequately prevent crypto companies from offering interest-like rewards on payment stablecoins. Without additional changes, we believe the current proposal would unnecessarily incentivize the flight of bank deposits into payment stablecoins, putting both economic growth and financial stability at risk.”
On Monday, Ohio Senator Bernie Moreno blasted Nichols’ letter, claiming “the banking cartel is in full panic mode.”
“For decades, these banks have treated your deposits like their personal piggy bank, paying you next to nothing while lending YOUR money out for massive profits and executive bonuses.”
The Clarity Act’s new markup session is scheduled for Thursday, May 14th.
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