ME News reports that on August 30 (UTC+8), the Independent Community Bankers of America (ICBA), representing approximately 5,000 U.S. community banks, is opposing the CLARITY Act. ICBA Chair and CEO Rebeca Romero Rainey stated that the “loopholes” related to stablecoin rewards must be fully closed, with no room for compromise. The ICBA argues that stablecoins could lead to $1.3 trillion in deposits leaving the banking system and reduce local lending by $850 billion. The association has persuaded Republican Senators Josh Hawley and Jerry Moran to oppose the current version of the bill. Rebeca Romero Rainey noted there is no evidence that cryptocurrencies will replace these deposits and reinvest them into local communities. She also criticized the White House Council of Economic Advisers’ (CEA) report, “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 fails to secure support from at least 60 senators, it will not advance to further consideration and may be stalled indefinitely. (Source: ODAILY)
U.S. Community Bankers Push for Complete Ban on Stablecoin Rewards, Warn of $1.3 Trillion Deposit Loss
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Summary
The Independent Community Bankers of America (ICBA) is advocating for a complete ban on stablecoin rewards under stablecoin regulation, warning of a $1.3 trillion deposit outflow. ICBA President Rebeca Romero Rainey called for closing the "loophole" without compromise. The group claims stablecoins could reduce local lending by $850 billion. Senators Josh Hawley and Jerry Moran have been persuaded to oppose the CLARITY Act. The Senate is scheduled to vote on the bill on September 15; it requires 60 votes to pass.
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