The American Bankers Association, the Independent Community Bankers of America and 76 state banking associations have again written to senators outlining their concerns about the wording of stablecoin rewards in the Clarity Act. The latest draft of the bill may be released in the next few days, with a push to get a Senate vote before recess on 8 August. The bill cleared the Senate Banking Committee in May with a vote of 15 to 9 including two Democrats. However, other issues in the bill are still being debated and getting more attention. The challenge for the bankers is it seems the senators may have shifted focus to the other topics and consider rewards as settled. White House crypto adviser Patrick Witt responded to the latest letter on X, “Asked and answered. Give it a rest.”
While the joint trades are proposing small amendments, they could have a big impact. The current wording bans interest-like rewards that are “solely” in connection with holding stablecoins. The banking groups want the “solely” dropped. It likely would not take much creativity to work around the solely requirement. For example, if the customer holds the balance and makes a single crypto trade in the past six months, they could qualify for rewards that look like interest.
The second major issue is a clause that appears to undermine the interest ban by allowing “rewards” linked to balance, duration and tenure. These are the very features that interest is usually tied to.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
