Citigroup CEO Fraser Backs Crypto Legislation Amid Stablecoin Reward Debate
Citigroup CEO Jane Fraser expressed her support for landmark cryptocurrency legislation, despite ongoing debates over stablecoin rewards. Speaking to Fox Business, Fraser stated that while she is concerned about the bill's treatment of stablecoin yields, she believes legislation would be beneficial overall.
The issue surrounding stablecoin rewards has resurfaced repeatedly in bill negotiations, with banks warning that rewards will draw deposits away from traditional banks and crypto firms arguing that restricting those rewards would hinder innovation. A compromise was seemingly reached after Senators Angela Alsobrooks and Thom Tillis finalized a deal in the Clarity Act, which states platforms cannot pay rewards just for holding assets.
However, Fraser remains worried about the potential impact on deposits. 'If you are having a reward system on deposits, it could have a detrimental impact on their deposits, and therefore their ability to provide lending and access to credit in parts of the U.S. that crypto won’t reach,' she said.