134 Banking Professionals Write to the Senate on CLARITY Act, Requesting Amendments to Key Stablecoin Provisions

TechFlow news, July 29, according to BitcoinNews, 134 U.S. banking association executives and bank heads wrote to Senate leadership, requesting amendments to Section 10404 before the final passage of the "CLARITY Act", to strengthen restrictions on interest, yields, and similar incentive measures for payment stablecoins.

The co-signers stated that if stablecoins are allowed to attract and retain funds through rewards, incentives, or other arrangements, it may weaken the bank deposit base that supports loans to households, small businesses, farmers, and local employers, and impact the sources of community credit funding. The focus of the controversy is whether payment stablecoins should serve solely as transaction tools, rather than holding products with deposit-like fund absorption functions.