US Independent Community Bankers Association: Calls for Full Ban on Stablecoin Rewards, Warns of Potential $1.3 Trillion Deposit Outflow

The Independent Community Bankers Association of America (ICBA), representing approximately 5,000 U.S. community banks, is opposing the CLARITY Act (Clear and Fair Labeling of Digital Assets Act). ICBA President and CEO Rebeca Romero Rainey stated that the "loophole" related to stablecoin rewards must be completely closed, with no room for compromise. ICBA said that stablecoins could cause $1.3 trillion in deposits to leave the banking system and reduce local lending by $850 billion. The association has urged Republican Senators Josh Hawley and Jerry Moran to oppose the current version of the bill. Romero Rainey noted that there is no evidence that cryptocurrencies would replace these deposits and redirect them to local communities. She also criticized the White House Council of Economic Advisers (CEA) report on the impact of a stablecoin yield ban on bank lending, saying it downplays concerns about deposit outflows. The Senate is scheduled to vote on the CLARITY Act on September 15; without support from at least 60 senators, the bill will not advance to further consideration and may stall in the foreseeable future.