WASHINGTON,—The American Bankers Association, the Independent Community Bankers of America, and 76 state banking associations sent a joint letter to Senate Majority Leader John Thune and Minority Leader Charles Schumer urging targeted changes to the proposed Clarity Act. The groups are seeking stronger guardrails to ensure payment stablecoins cannot function as substitutes for traditional bank deposits.
While expressing support for a regulated digital asset marketplace, the associations emphasized the need for clear, enforceable boundaries regarding stablecoin interest, yield, and reward structures. They warned that ambiguities in the bill’s current draft could allow stablecoins to serve as store-of-value products rather than pure transaction tools.
The coalition cautioned that potential deposit flight to nonbank stablecoin arrangements would directly threaten local credit availability, including small-business financing, mortgage lending, and agricultural loans.
To prevent circumventing the prohibition on yield, the associations urged lawmakers to replace the bill’s “functional and economic equivalent” standard with a stricter “substantially similar” standard. They also called for the removal of language that permits rewards tied to stablecoin balances, duration, or tenure, arguing such provisions incentivize the idle holding of stablecoins over long periods.