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Community Bank Group Targets Stablecoin Rewards in Clarity Act Fight
The ICBA targets stablecoin reward provisions in the Clarity Act, arguing non-bank issuers would get an unfair edge over community banks that face stricter deposit rules.
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The Independent Community Bankers of America (ICBA) launched a new campaign Tuesday against stablecoin reward provisions in the Clarity Act, the industry group said in a statement. The ICBA argues the provisions would let non-bank issuers offer interest-like rewards on stablecoin holdings, creating an uneven playing field for community banks that face stricter limits on deposit-linked incentives.
Crypto industry representatives pushed back. The legislation would establish clear federal rules for stablecoin issuers while preserving consumer access to digital asset services, said a spokesperson for the Blockchain Association, which supports the bill. The Clarity Act, introduced in the House earlier this year, would create a federal licensing framework for stablecoin issuers and preempt a patchwork of state-level rules.
The ICBA's campaign includes a letter to lawmakers and a digital ad buy targeting key committee members. The group represents roughly 50,000 community bank locations. Its opposition follows a similar push by the American Bankers Association, which raised concerns about stablecoin competition in a separate letter last month.