Clarity Act Talks Intensify as Banks Seek Final Revisions

TLDR

• ABA CEO Rob Nichols said the banking lobby supports the Clarity Act but wants limited changes.
• Banks want lawmakers to address stablecoin rewards and their possible effect on local lending.
• Nichols said the requested changes cover only two paragraphs in the roughly 600-page bill.
• Senators are working to advance the Clarity Act before Congress begins its August recess.
• Coinbase withdrew support earlier after opposing proposed restrictions on stablecoin yield.

Bankers Association CEO Rob Nichols said the banking lobby wants the Clarity Act to pass. However, he said lawmakers should make changes before a vote.

Speaking on CNBC’s Squawk Box, Nichols said the group supports most of the 600-page bill. He said its concerns focus on two paragraphs linked to stablecoin rewards and local lending.

Clarity Act Faces Stablecoin Dispute

The Clarity Act aims to create federal rules for crypto markets in the United States. Lawmakers hope to advance the bill before Congress leaves for the August recess.

Banks remain concerned that crypto platforms could offer stablecoin rewards that draw deposits away from local lenders. They argue this could reduce funds available for loans to households and small businesses.

Coinbase withdrew support for the bill in January after disputes with banking groups. The exchange opposed efforts to restrict customer rewards on stablecoins.

Coinbase policy chief Faryar Shirzad said large banks are using blockchain products. JPMorgan and Bank of America have shown interest in stablecoins and payment services.

Senators Seek Bipartisan Agreement

A new draft would block federal officials and family members from issuing or promoting digital assets. The rule responds to concerns raised by Democratic lawmakers.

Republicans want senators to complete the bill soon. Some Democrats support the market structure plan, while Senator Elizabeth Warren has raised concerns about political conflicts and criminal use.

Nichols said banking and crypto companies can operate in the same market. He added that the United States can support both a strong banking sector and a growing digital asset industry.

Fidelity, Goldman Sachs, crypto groups, and several lawmakers have backed the revised text. Debate centers on whether senators can settle the stablecoin issue and move the Clarity Act forward before the recess.

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