Bankers Say CLARITY Act Stablecoin Provisions Still Flawed
US bankers argue the CLARITY Act's stablecoin provisions fail to protect bank deposits and close loopholes for yield generation.Summary
Major US banking groups have expressed dissatisfaction with the CLARITY Act's proposed language regarding stablecoin yield, asserting that it does not adequately protect bank deposits. While acknowledging the senators' goal of prohibiting stablecoin yield, the bankers contend that the current wording falls short. They are concerned that loopholes could allow crypto platforms to offer bank-like interest, potentially leading to significant outflows from the banking system, particularly impacting community banks. Bankers cite studies suggesting trillions in outflows and a substantial reduction in loans to consumers and small businesses. They specifically point to Section 404 as a "significant loophole" that needs to be addressed. Senator Thom Tillis, however, views the current text as a compromise that prohibits yield on idle balances while allowing other customer rewards, aiming for bipartisan passage and regulatory certainty for innovation, acknowledging a disagreement with some in the banking industry.
(Source：Cointelegraph)