134 US Bank Executives Urge Senate to Tighten CLARITY Act Stablecoin Interest Rules

Banking leaders warn that stablecoin rewards could drain hundreds of billions from local lending, urging stricter Senate amendments to the CLARITY Act.

Woofun AI reports that 134 executives and officials from U.S. banking associations are petitioning the Senate to amend Section 10404 of the CLARITY Act before final passage. The group seeks to strengthen restrictions on interest payments and returns associated with payment stablecoins.

The signatories argue that broadening these restrictions is necessary to prevent companies from offering economic benefits through rewards or incentives. They warn that such mechanisms could weaken the funding base for local loans by hundreds of billions of dollars, undermining deposits that support lending to families, small businesses, farmers, and local employers.