A group of 134 U.S. banking association officials and bank executives is urging the Senate to revise Section 10404 of the CLARITY Act before the bill reaches final passage. Their request centers on tighter limits for interest and yield tied to payment stablecoins.
The signatories want lawmakers to broaden the restriction so companies cannot offer stablecoin holders similar economic benefits through rewards, incentives, or other arrangements. In their view, stablecoins that attract and retain balances with interest-like perks could pull away a funding base worth hundreds of billions of dollars that currently supports local lending.
The letter argues that deposits remain the foundation for loans made to households, small businesses, farmers, and local employers. At the same time, the group says clear rules can still leave room for payment stablecoins to develop while preserving financing channels that support community lending.
Odaily reported that 134 U.S. banking association officials and bank executives have urged the Senate to revise Section 10404 of the CLARITY Act before the bill is finally passed, seeking stronger restrictions on interest and yield tied to payment stablecoins.
According to the report, banking representatives want lawmakers to expand the scope of the restriction so companies cannot provide stablecoin holders with similar economic benefits through rewards, incentives, or other arrangements.
They said that if stablecoins are allowed to attract and retain balances through interest-like rewards, the deposit funding base that supports local lending could be weakened by hundreds of billions of dollars.
The letter says deposits are the foundation for loans extended to households, small businesses, farmers, and local employers. The signatories added that clearer rules could allow payment stablecoins to develop while preserving financing channels that support community lending.
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