The ABA requests specific technical changes to prevent customers from migrating to stablecoins.
The Senate Banking Committee of the US Congress will vote on the Clarity Act on Thursday.
In a letter sent to the CEOs of member banks, American Bankers Association (ABA) President and CEO Rob Nichols called for immediate and coordinated action ahead of the Senate Banking Committee’s upcoming vote on the Clarity Act.
This legislation seeks to establish, for the first time, a comprehensive federal regulatory framework for digital assets, with special emphasis on stablecoins. Nichols acknowledged that the proposal represents an improvement over previous versions and that the banking industry supports the creation of clear rules and responsible safeguards for the cryptocurrency sector.
However, he cautioned that the current wording does not clearly sufficiently prevent cryptocurrency companies from offer interest-like rewards on payment stablecoins.
According to his letter, this could unnecessarily encourage the migration of bank deposits towards these stablecoins such as USDT or USDC for example, generating risks for the economic growth and financial stability of the country.
To be clear, we want Congress to set rules for digital assets and create responsible safeguards for the cryptocurrency industry. The current version of the legislation, although improved from a previous version, still does not adequately prevent cryptocurrency companies from offering interest-like rewards on payment stablecoins.
Rob Nichols, president of the American Bankers Association (ABA).
The previous Friday, the ABA together with other banking associations they sent a joint letter to the leaders of the Senate Banking Committee, including Senators Tim Scott and Elizabeth Warren. In that document they requested specific technical adjustments to the language related to rewards to strengthen protections.
The Clarity Act incorporates a compromise negotiated between senators from both parties, such as Angela Alsobrooks (Democrat) and Thom Tillis (Republican). This agreement expressly prohibits the payment of interest or returns equivalent to those of bank deposits. just for holding stablecoins.
Nevertheless, allows incentives tied to real activities or transactions. Bankers argue that the exceptions are broad enough to allow for evasion, for example through fixed monthly payments that increase according to the balance held.
The Senate Banking Committee is scheduled to review and vote for this Thursday. Given this, the ABA urges bankers and their employees to contact their senators directly to request the closure of what they consider a legal loophole.
The organization facilitated a grassroots efforts website to simplify the sending communications written or called to the senatorial offices.
This last-minute effort reflects months of intense negotiations between traditional banks, the cryptocurrency sector, legislators and the White House. Previously, the digital asset industry had withdrawn its support for previous versions of the law due to disagreements over the treatment of rewards, a fact reported by CriptoNoticias.
Although the current commitment is supported by companies such as Coinbase, banking groups insist that not enough to prevent unfair competition with traditional deposits.
The controversy underscores persistent tensions between protecting the stability of the financial system and driving innovation in digital payments. If passed without changes, the Clarity Act would clarify responsibilities between federal agencies and offer greater regulatory certainty to the digital asset market in the United States.