Citigroup CEO Backs CLARITY Act Despite Stablecoin Reward Concerns
Citigroup CEO Jane Fraser said she supports passing the U.S. CLARITY Act, even as banks continue pushing for changes to its treatment of stablecoin rewards.
Fraser warned that allowing crypto platforms to offer rewards could pull deposits away from traditional banks, potentially reducing their ability to provide loans and credit. Still, she said a well-crafted crypto market structure bill would be beneficial for the financial system overall.
A Senate compromise currently prohibits platforms from paying rewards solely for holding stablecoins, while allowing incentives tied to transactions and payments.
The issue remains one of the biggest points of contention between banks and the crypto industry. JPMorgan CEO Jamie Dimon has taken a tougher stance against the legislation, while crypto groups argue that excessive restrictions on stablecoin rewards would undermine competition and innovation.
The debate is expected to intensify ahead of the CLARITY Act’s upcoming Senate procedural vote.
Citigroup CEO Jane Fraser said she supports passing the U.S. CLARITY Act, even as banks continue pushing for changes to its treatment of stablecoin rewards.
Fraser warned that allowing crypto platforms to offer rewards could pull deposits away from traditional banks, potentially reducing their ability to provide loans and credit. Still, she said a well-crafted crypto market structure bill would be beneficial for the financial system overall.
A Senate compromise currently prohibits platforms from paying rewards solely for holding stablecoins, while allowing incentives tied to transactions and payments.
The issue remains one of the biggest points of contention between banks and the crypto industry. JPMorgan CEO Jamie Dimon has taken a tougher stance against the legislation, while crypto groups argue that excessive restrictions on stablecoin rewards would undermine competition and innovation.
The debate is expected to intensify ahead of the CLARITY Act’s upcoming Senate procedural vote.