ABA warns Clarity Act could trigger bank deposit outflows to stablecoins

American Bankers Association (ABA) CEO Rob Nichols warned in a recent open letter to major bank CEOs that the Clarity Act, if passed without further amendments, would unnecessarily encourage an outflow of bank deposits into payment stablecoins. He argued this would endanger both U.S. economic growth and financial stability. Nichols added that the bill in its current form would not prevent crypto firms from offering interest-like rewards on stablecoins and called for stronger regulations on the matter.