A coalition of trade associations representing all types of American banks urged the Senate Banking Committee to significantly overhaul a proposed compromise to restrict stablecoin rewards.
The letter, sent Friday, is the most dire warning by the banking industry to date about the possible consequences of a crypto market structure bill that could be marked up as soon as next week.
“The proposed language includes exceptions that will enable evasion of the intended prohibition and incentivize customers to hold and grow stablecoin balances at the expense of deposits,” the banks wrote. “When deposits decline, it reduces the availability of credit that supports communities and pathways to upward mobility.”
