Bank Leaders Decline Stablecoin Reward Talks Ahead of Senate Committee Meeting

Patrick Witt reported that major bank trade leaders declined to attend meetings in February regarding stablecoin rewards, prior to the Senate Banking Committee's markup of the CLARITY Act on May 14. According to NS3.AI, the American Bankers Association is advocating for stricter regulations, expressing concerns that crypto rewards might divert deposits away from banks. The Council of Economic Advisers indicated that a complete ban on yield could potentially increase bank lending by approximately $2.1 billion, or about 0.02%, in its baseline scenario.