The Independent Community Bankers of America, which represents about 5,000 U.S. community banks, is pushing back against the Digital Asset Market Clarity Act, or CLARITY Act. ICBA President and CEO Rebeca Romero Rainey said loopholes tied to stablecoin rewards should be closed completely, with no compromise. The group argues that stablecoins could pull as much as $1.3 trillion in deposits out of the banking system and reduce local lending by $850 billion. ICBA also said it helped persuade Republican Senators Josh Hawley and Jerry Moran to oppose the current version of the bill. Rainey added that there is no sign crypto would replace those deposits in a way that sends money back into local communities. She also criticized a Council of Economic Advisers report titled Impact of Stablecoin Yield Ban on Bank Lending, saying it downplayed banks’ concerns about deposit outflows. The Senate is scheduled to vote on the CLARITY Act on Sept. 15. If the bill fails to win at least 60 votes, it will not move to the next stage of consideration and could stall for the foreseeable future, according to Bitcoin.com News.
The Independent Community Bankers of America, or ICBA, is opposing the Digital Asset Market Clarity Act, known as the CLARITY Act, according to Odaily, citing Bitcoin.com News. The group represents about 5,000 U.S. community banks.
ICBA President and CEO Rebeca Romero Rainey said loopholes tied to stablecoin rewards must be shut completely, with no middle-ground option.
ICBA said stablecoins could lead to $1.3 trillion in deposits leaving the banking system and cut local lending by $850 billion. The association also said it had helped persuade Republican Senators Josh Hawley and Jerry Moran to oppose the current version of the bill.
Rainey said there is no evidence that cryptocurrency would replace those deposits and send them back into local communities. She also criticized a Council of Economic Advisers report, titled Impact of Stablecoin Yield Ban on Bank Lending, saying it downplayed banks’ concerns over deposit outflows.
The Senate is scheduled to vote on the CLARITY Act on Sept. 15. If the bill does not secure support from at least 60 senators, it will not advance to further consideration and could stop moving forward for the foreseeable future.
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