U.S. banking groups say CLARITY deposit outflow safeguards are insufficient

Eight U.S. banking industry groups sent a letter to Senate leadership criticizing newly added anti-disintermediation safeguards in the CLARITY bill as ineffective, according to Eleanor Terrett. The groups said the mechanism would kick in only after substantial deposit outflows had already occurred and urged further changes to close loopholes that could effectively allow interest-like rewards to be paid on stablecoin balances.