Eight U.S. banking trade groups called on Senate leaders to impose stricter limits on stablecoin rewards within the Clarity Act, sending a letter to Senate Majority Leader John Thune and Senate Minority Leader Chuck Schumer on Monday, Sept. 14.
The banking associations argue that current exceptions in the bill could facilitate interest-like payments on stablecoin holdings, drawing deposits away from traditional banks and reducing capital available for lending.
The groups specifically requested removal of language that permits rewards tied to stablecoin balances, duration of holding, or user tenure. They said a proposed safeguard designed to prevent deposit flight would activate too late.
While the Clarity Act primarily addresses market structure by defining digital assets as either securities or commodities, the banking groups' focus is on the bill's stablecoin-related clauses. The bill already prohibits the president, vice president and lawmakers from receiving paid token issuance or promotion.
