U.S. Community Bankers Association opposes CLARITY Act, demands full ban on stablecoin rewards

PANews reported on August 30, according to News.bitcoin, that the Independent Community Bankers of America (ICBA), which represents about 5,000 community banks in the United States, opposes the CLARITY Act, stressing that there is no room for compromise on the issue of stablecoin yields. ICBA President and CEO Rebeca Romero Rainey said the "loopholes" related to stablecoin rewards must be completely closed, and there is no compromise. ICBA said stablecoins could cause $1.3 trillion in deposits to leave the banking system and reduce local lending by $850 billion.

Rebeca Romero Rainey said there is no sign that cryptocurrency will replace these deposits and be redirected to local communities. She also criticized a report issued by the White House Council of Economic Advisers (CEA), titled "The Impact of a Stablecoin Yield Ban on Bank Lending," for downplaying banks' concerns about deposit outflows. The Senate plans to vote on the CLARITY Act on September 15; if the bill cannot secure the support of at least 60 senators, it will be unable to proceed to further consideration and may stop advancing for the foreseeable future.