Citigroup CEO Jane Fraser wants stablecoin reward provisions in the CLARITY Act revised, warning they could drain bank deposits and tilt the playing field against traditional lenders.
Citigroup CEO Jane Fraser wants the Digital Asset Market Clarity Act amended before it becomes law. Her target: provisions that would let stablecoin issuers offer rewards tied to transactions.
In a Fox Business interview, Fraser argued those reward mechanisms could pull deposits out of traditional banks. Banks face reserve requirements and regulatory oversight on every dollar they hold. Stablecoin platforms offering comparable yields might not, at least under the current draft.
That asymmetry is what Fraser wants Congress to address. She called a properly refined version of the bill a “very positive outcome for the entire system.”
The CLARITY Act passed the Senate Banking Committee in May 2026 with a bipartisan 15-9 vote. It aims to set clear regulatory boundaries for digital asset markets: which assets are securities, which are commodities, and who oversees what.
Fraser’s comments are notable for what they don’t say. She hasn’t called for the bill to be scrapped. She’s publicly acknowledged that digital asset regulation is necessary and overdue, while pushing for amendments that protect the banking sector’s core lending model.
Her position reflects a banking industry that has accepted digital assets aren’t going away. Banks are now focused on shaping the rules rather than fighting the game. Fraser said they “have not given up on improving the bill,” which suggests ongoing talks with lawmakers.
The competitive dynamics she’s highlighting point to a broader tension. Banks have spent decades operating under Basel capital requirements, Dodd-Frank stress tests, and FDIC deposit insurance mandates. If new digital asset entities can offer similar services without similar regulatory costs, the playing field tilts.
For the digital asset industry, the CLARITY Act’s progress is broadly positive. Regulatory clarity has been the single most requested item from institutional players, exchanges, and token issuers for years. The banking lobby’s push for amendments could slow the bill’s timeline or alter its final shape. If reward mechanisms get curtailed or subjected to banking-equivalent regulations, it could limit one of the key competitive advantages stablecoin platforms have been building toward.
Fraser’s intervention is a reminder that the biggest banks are no longer sitting out the digital asset debate. They are inside the room, asking for changes that protect their franchise.
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