American Bankers Association: Support the passage of the CLARITY Act, but stablecoin reward provisions should be tightened

Comparing news, American Bankers Association (ABA) President and CEO Rob Nichols said the goal was to strengthen rather than prevent the passage of the CLARITY Act. It believes that the digital asset industry needs a clear regulatory framework, but one of the key provisions of the bill relating to stablecoin rewards still needs to be further tightened.

Nichols pointed out that the 2025 “GENIUS Act” already prohibits stablecoin issuers from paying interest or income to holders, and the current dispute is whether related parties such as crypto trading platforms can provide similar interest rewards. He believes that if stablecoin wallets attract outflows of bank deposits through such mechanisms, it may weaken banks' financial base for small business loans, housing mortgages, and agricultural financing.

The American Bankers Association proposed amending the relevant statement in the bill to prohibit stablecoin rewards substantially similar to interest payments, and remove some potentially ambiguous wording. Nichols said the modifications won't stop crypto companies from offering other rewards programs, but they could prevent the reward mechanism from evolving into disguised deposit interest.

He also said that the American Bankers Association is pushing for the Senate to amend the relevant provisions before the September vote, and believes that the US can become both a global banking center and a global crypto center, but only if clear and consistent regulatory rules are established.