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Citi CEO backs a revised Crypto Clarity Act ahead of a September vote

Citi flagged risks that rewarding stablecoin holdings could pull deposits from smaller banks, while lawmakers are aiming to vote in September after missing a prior recess deadline.

Reported · Written up by our desk · Regulation

Citigroup CEO Jane Fraser said the bank wants the long-awaited U.S. Crypto Clarity Act to move forward, even as she acknowledged that improvements are still needed to the bill. In remarks reported by Bitcoin Magazine, Fraser said Citi is willing to work on the legislation to help secure passage.

Fraser described Citi as a leader in digital assets and argued that the goal should be regulation that supports innovation alongside safe adoption of digital-asset capabilities. Bitcoin Magazine also reported that lawmakers previously sought a vote before splitting for recess, but ran out of time, pushing the vote to September.

A key sticking point involves concerns raised by the banking industry about crypto firms paying customers yield for holding stablecoins, which banks say could harm their deposit base. Fraser reiterated that smaller banks play an important role in the U.S. and warned that a reward system on deposits could have a detrimental effect.

Bitcoin Magazine noted that Coinbase pulled its support for the bill in January after disputes with banking leaders over whether earning yield on stablecoins should be banned. The outlet also said the bill cleared the House last year, but has been deadlocked since 2026, with both Republicans and Democrats continuing to work on revised versions.

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