US Banks Push for CLARITY Act Revisions Amid Deposit Protection Concerns

US banking groups are urging revisions to the CLARITY Act, a digital-asset market structure bill currently under discussion in Congress. According to industry insiders, the legislation does not do enough to safeguard bank deposits.

The banking sector's concerns center around stablecoin interest payments, with some arguing that current language leaves room for crypto platforms to offer returns similar to deposits.

Wider adoption of stablecoins could lead to significant deposit outflows from US banks, forcing regional institutions to rely on higher-cost borrowing and potentially reducing lending by over 20%, according to studies.