American Bankers Association: Supports Passage of CLARITY Act but Calls for Tightening Stablecoin Reward Provision

BlockBeats News, August 19th, American Bankers Association (ABA) President and CEO Rob Nichols stated that the goal is to strengthen rather than block the CLARITY Act. He believes that the digital asset industry needs a clear regulatory framework, but a key provision regarding stablecoin rewards in the bill still needs further tightening.

Nichols pointed out that the 2025 GENIUS Act has already prohibited stablecoin issuers from paying interest or returns to holders, and the current controversy lies in whether affiliated parties such as cryptocurrency exchanges can offer similar interest-like rewards. He believes that if stablecoin wallets attract bank deposits outflow through such a mechanism, it could weaken the funding base for bank loans to small businesses, mortgages, and agricultural financing.

The American Bankers Association has proposed modifying the wording in the bill to prohibit stablecoin rewards that are “substantially similar” to interest payments and removing some language that could lead to ambiguity. Nichols stated that these modifications will not prevent crypto companies from offering other reward schemes but can prevent the reward mechanism from evolving into de facto deposit interest.

He also mentioned that the American Bankers Association is urging senators to amend the relevant provisions before the September vote and believes that the U.S. can be both a global banking hub and a global crypto hub, but only if clear, consistent regulatory rules are established.