Trump Admin Prepares Interactive Tool to Counter Bank Fears on Stablecoin Impact
The Trump administration is working on an interactive tool to counter concerns from banks about the potential impact of stablecoins on community bank deposits, according to Council of Economic Advisers Chair Chris Phelan.
The CLARITY Act, a landmark crypto legislation, aims to divide digital asset oversight between the SEC and CFTC. However, banking groups argue that recent changes to the bill do not go far enough.
A key concern for community banks is the potential loss of deposits due to stablecoin growth. The Council of Economic Advisers has analyzed this issue and found no meaningful link between stablecoin growth and deposit flight.
The Senate vote on the CLARITY Act requires at least 60 votes to advance. Some Republican lawmakers, including Sen. John Cornyn, may oppose it due to concerns raised by community banks, while crypto-friendly Democrats argue that the revised ethics provisions do not sufficiently restrict President Donald Trump and his family.