Banking industry pushes back on Clarity Act over stablecoin competition. The American Bankers Association is urging senators to eliminate provisions allowing crypto firms to offer stablecoin rewards, warning the bill could trigger a flight of deposits from traditional banks to payment stablecoins. ABA President Rob Nichols argues the current legislation fails to adequately prevent this shift, claiming it threatens both economic growth and financial stability. Senator Bernie Moreno fired back, accusing banks of operating as a cartel that has historically paid depositors minimal interest while generating substantial profits. The Senate Banking Committee scheduled a markup session for May 14th to consider the proposed digital asset regulation, setting up a critical showdown between traditional finance and the crypto industry over deposit competition and financial system structure.
