ICBA and other groups wrote to members of the Senate Banking Committee, urging them to address critical concerns regarding the risk of deposit flight and diminished credit and lending associated with permitting yield on payment stablecoins. ICBA and the other groups said:

• Senators Tillis and Alsobrooks released new Section 404 language of the CLARITY Act that reflects their efforts to balance financial innovation with the foundational role that bank deposits play in supporting lending, economic growth and community development.

• Additional work is needed to arrive at text that embraces the innovation represented by digital assets while protecting consumers, ensuring the stability of the U.S. financial system, and mitigating the risks to Main Street communities posed by the payment of yield or interest on payment stablecoins.