The latest version of a proposed market structure bill for digital assets still puts at risk the local lending that drives economic activity in the U.S, the American Bankers Association and five other banking sector associations said in a joint statement.
The Senate today released a new version of the Clarity Act with updates to bar presidents and other federal officials from issuing or sponsoring cryptocurrencies and other digital assets, according to a summary by CNBC. However, the revised text would not close a loophole that stablecoin issuers could exploit to bypass the 2025 Genius Act’s prohibition on interest and yield on payment stablecoins. ABA and others have noted that the Treasury Department concluded that $6.6 trillion in bank deposits could be at risk if stablecoins are allowed to pay interest or rewards.
Still, the associations said that while they are disappointed the bill would not close the loophole, “we are encouraged by the constructive conversations we are having with senators who share our concerns.”
“We appreciate their willingness to consider targeted changes that would strengthen the prohibition on interest-like payments for holding stablecoins, which will siphon away the bank deposits that fuel small business, mortgage and farm loans in communities across the country,” they said. “Our good faith efforts to strengthen the Clarity Act will continue.”
The Senate is expected to vote on the Clarity Act before it leaves for August recess next week.
