In a letter to member bank CEOs, Rob Nichols, president and CEO of the American Bankers Association (ABA), called for immediate and coordinated action ahead of the Senate Banking Committee’s upcoming vote on the Clarity Act.
The bill aims to establish, for the first time, a comprehensive federal regulatory framework for digital assets, with a specific focus on stablecoins. Nichols acknowledged that the proposal is an advance over previous versions and that the banking industry supports the creation of clear rules and responsible safeguards for the cryptocurrency sector.
However, he cautioned that the current language is not clearly sufficient to prevent crypto companies from: Offer rewards like interest on stablecoin payments.
According to his letter, this could unnecessarily encourage the migration of bank deposits to stablecoins such as USDT and USDC, posing risks to the country’s economic growth and financial stability.
To be clear, we want Congress to set rules for digital assets and create responsible safeguards for the cryptocurrency industry. While the current bill is an improvement over previous versions, it does not go far enough to prevent cryptocurrency companies from offering rewards such as interest on stablecoin payments.
Rob Nichols is President of the American Bankers Association (ABA).
Early Friday morning, the ABA, along with other banking associations, sent a joint letter to the leadership of the Senate Banking Committee, including Sen. Tim Scott and Sen. Elizabeth Warren. In that document, they called for specific technical adjustments to the language related to remuneration to strengthen protection.
The Transparency Act includes a compromise negotiated between senators from both parties, including Democrat Angela Alsobrooks and Republican Thom Tillis. This Agreement expressly prohibits the payment of interest or refunds equivalent to bank deposits. Just to hold a stablecoin.
Nevertheless, Allows incentives tied to actual activities and transactions. Bankers argue that this exception is broad enough to allow them to avoid, for example, fixed monthly payments that increase with balances held.
The Senate Banking Committee is scheduled to consider and vote on the bill this Thursday. In light of this, the ABA is calling on bankers and their employees to contact their senators directly and request that they close what they believe to be legal loopholes.
The organization has set up a grassroots website and simplified writing and calling the Senate office.
This last-minute effort reflects months of intense negotiations between traditional banks, the crypto sector, lawmakers, and the White House. CriptoNoticias previously reported that the digital asset industry withdrew its support for an earlier version of the law, citing disagreements over the treatment of fees.
The current effort is supported by companies such as Coinbase, but the banking group argues that: Not enough to prevent unfair competition Use traditional deposits.
The controversy highlights the persistent tension between protecting the stability of the financial system and promoting innovation in digital payments. If passed without changes, the Transparency Act would clarify responsibilities among federal agencies and increase regulatory certainty for U.S. digital asset markets.
(Tag translation) Cryptocurrency
