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ABA seeks changes to stablecoin provision in Clarity Act
The American Bankers Association says Congress should prevent stablecoins from operating like interest bearing deposits, while allowing payments innovation.
CoinDesk reports that when the U.S. Senate returns from its August recess, lawmakers are set to consider the Clarity Act, which would create a comprehensive regulatory framework for digital assets.
The American Bankers Association, represented by Rob Nichols, president and CEO of the ABA, says it is not trying to block the bill and instead wants to strengthen one key section focused on stablecoins.
In particular, the ABA argues for preventing stablecoins from becoming shadow, interest-bearing deposits while still enabling payments innovation, calling the distinction important for consumer protections and avoiding unintended economic effects.
The group points to the 2025 GENIUS Act, which bars stablecoin issuers from offering interest or yield, and says the current debate centers on whether affiliates such as crypto exchanges could offer interest-like rewards that might encourage consumers to move money from bank deposits to stablecoin wallets.