The American Bankers Association (ABA) is pushing for major changes to the Clarity Act, claiming the crypto market structure law could cause bank deposits to lose ground to stablecoins.
Last week, the Senate Banking Committee announced it had scheduled another markup session to discuss the potential legislation.
Over the weekend, ABA President Rob Nichols sent an email to all CEOs of its member banks, urging them to contact their respective senators to request that they remove provisions from the bill that would allow crypto companies to offer stablecoin rewards.
“To be clear, we want Congress to enact digital asset regulations and establish responsible guardrails for the crypto industry. The current version of the legislation, while improved from an earlier version, still does not sufficiently prevent crypto companies from offering interest-like rewards on payment stablecoins. Without additional changes, we believe the current proposal would unnecessarily encourage the flight from bank deposits to payment stablecoins, jeopardizing both economic growth and financial stability.”
On Monday, Ohio Sen. Bernie Moreno blasted Nichols’ letter, claiming that “the banking cartel is in full panic.”
“For decades, these banks have treated your deposits like their personal piggy bank, paying you next to nothing while lending YOUR money out for huge profits and executive bonuses.”
The new Clarity Act markup session is scheduled for Thursday, May 14.
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