US Banks Seek Stricter Stablecoin Reward Rules Ahead of Senate Vote
The U.S. banking industry is pushing for stricter regulations on stablecoin rewards ahead of the Senate's Clarity Act vote on Tuesday.
A coalition of eight major bank groups, including the American Bankers Association and Independent Community Bankers of America, has urged lawmakers to strengthen restrictions on stablecoin-linked rewards in the bill.
The groups argue that current language in the Clarity Act still allows crypto companies to provide rewards that resemble traditional savings accounts. They want Congress to draw a clearer boundary and remove language allowing rewards based on stablecoin holding size and duration.
The banking industry is also challenging a proposed deposit-flight circuit breaker in the bill, which would only activate after significant deposit outflows have already occurred.