Banks Want More: Trade Groups Demand Stricter Stablecoin Limits in Clarity Act

Eight trade associations say exceptions for interest-like rewards could pull deposits from banks and reduce lending.

• Banking trade groups are urging stricter limits on stablecoin rewards in the Clarity Act, fearing they could pull deposits from traditional banks.
• They argue that exceptions for interest-like payments on stablecoins could reduce lending for mortgages, farms, and small businesses.
• The groups advocate for upfront prohibitions rather than a reactive 'circuit breaker' to protect banks and communities.

Topics: Legal regulatory, Banks bankingsystems, Public market, Securities law classification, Core banking integration, Token issuance distribution

Tags: #stablecoin #clarityact #bankingtradegroups #depositflight #interestlikerewards #lending #regulatoryclarity #digitalassets #congress

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