ICBA Opposes CLARITY Act Over Stablecoin Reward Loophole

The Independent Community Bankers of America, which represents about 5,000 U.S. community banks, is opposing the Digital Asset Market Clarity Act. According to ChainCatcher, ICBA President and CEO Rebeca Romero Rainey said the stablecoin rewards-related loophole must be closed without compromise. ICBA said stablecoins could pull $1.3 trillion in deposits out of the banking system and reduce local lending by $850 billion. The group said it has helped persuade Republican Senators Josh Hawley and Jerry Moran to oppose the current version of the bill. Romero Rainey said there is no evidence that crypto would replace those deposits and redirect them back into local communities. She also criticized a White House Council of Economic Advisers report titled "The Impact of a Stablecoin Yield Ban on Bank Lending," saying it downplayed banks' concerns about deposit outflows. The Senate is scheduled to vote on the CLARITY Act on September 15, and the bill would not advance if it fails to win support from at least 60 senators.