{"id":77451,"date":"2026-08-29T21:00:04","date_gmt":"2026-08-29T21:00:04","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/community-bankers-demand-total-ban-on-stablecoin-rewards\/"},"modified":"2026-08-29T21:00:04","modified_gmt":"2026-08-29T21:00:04","slug":"community-bankers-demand-total-ban-on-stablecoin-rewards","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/community-bankers-demand-total-ban-on-stablecoin-rewards\/","title":{"rendered":"Community Bankers Demand Total Ban on Stablecoin Rewards"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Community banks revived stablecoin reward concerns, swaying two Republican senators to oppose CLARITY.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">ICBA warned stablecoins could trigger a $1.3T deposit flight, cutting local bank lending by $850B.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Growing opposition leaves CLARITY short of 60 Senate votes, threatening to kill the bill on Sept 15.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Community Banks Draw Close Ranks On Stablecoin Yield<\/h2>\n<p>Passing the Digital Asset Market Clarity Act has become a difficult task, as <a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/community-banks-stall-clarity-act-over-stablecoin-rewards\/\">issues believed to be solved rise again.<\/a><\/p>\n<p>While both parties, the crypto industry and big banking, had reached a compromise on the language to confine stablecoin rewards to activity rather than ownership, this key pain point has been revived by community banks, which have already swayed at least two Republican senators, Josh Hawley and Jerry Moran, to oppose CLARITY in its current form.<\/p>\n<p>Independent Community Bankers of America (ICBA), a membership organization that groups roughly 5,000 community banks in the U.S., has recently updated its demands for changes to the CLARITY Act and highlighted how a wrong decision could affect the future of these institutions and the groups that receive credit through their intermediation.<\/p>\n<p>In an interview with Banking Dive, Rebeca Romero Rainey, president and CEO of ICBA, <a href=\"https:\/\/www.bankingdive.com\/news\/icba-ceo-rebeca-romero-rainey-clarity-act-stablecoin-loophole-trust-bank-charter-skinny-master\/828912\/\" target=\"_blank\" rel=\"noopener noreferrer\">declared that the discussion around these rewards should not revolve around compromise<\/a>, as the future of the community banking sector might be at stake.<\/p>\n<p><strong>\u201cThere\u2019s always the suggestion, well, how do we make both sides happy on this? For us, this loophole has to be closed entirely. There\u2019s not a middle ground in terms of resolution,\u201d<\/strong> Romero said.<\/p>\n<p>She stressed that the main concern around CLARITY was deposit flight, estimating that $1.3 trillion could leave the banking system for stablecoins, prompting an $850 billion decline in local lending.<\/p>\n<p><strong>\u201cThere\u2019s nothing to suggest that cryptocurrency would replace those deposits and redeploy them in local communities. That\u2019s what has gotten the attention of a number of senators at this point,\u201d<\/strong> Romero explained.<\/p>\n<p>Finally, Romero criticized the <strong>\u201cEffects of Stablecoin Yield Prohibition on Bank Lending\u201d<\/strong> report issued by the Council of Economic Advisers of the White House, which downplays banks\u2019 concerns about deposit flight.<\/p>\n<p><strong>\u201cThe rationale for some of this pushback doesn\u2019t make sense because it doesn\u2019t take into account a significant change in the environment if this legislation were passed,\u201d<\/strong> she concluded.<\/p>\n<p>The Senate has <a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/clarity-act-vote-is-set-for-sept-15-heres-what-happens-next\/\">convened for a vote<\/a> on the CLARITY Act on September 15, but<a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/clarity-act-odds-crash-to-10-before-senate-returns-galaxy\/\"> it seems unlikely<\/a> that at least 60 senators will agree to move the bill for further consideration, which would kill it for the foreseeable future.<\/p>\n<div class=\"not-prose my-3 lg:my-4\"><a aria-label=\"Read Now: Clarity Act Won\u2019t Save US Treasury Debt Market, Analyst Warns\" class=\"block overflow-hidden rounded-lg !bg-[#E8EDFA] p-[9px] no-underline focus-visible:outline-none focus-visible:ring-2 focus-visible:ring-[#4169E1] focus-visible:ring-offset-2 flex flex-col md:hidden\" href=\"https:\/\/news.bitcoin.com\/clarity-act-wont-save-us-treasury-debt-market-analyst-warns\/\"><\/p>\n<div class=\"relative aspect-video w-full overflow-hidden rounded-[15px]\"><\/p>\n<h3 class=\"absolute inset-x-0 bottom-0 m-0 p-3 text-xl font-bold capitalize leading-[1.17] tracking-[-0.4px] !text-white\">Clarity Act Won\u2019t Save US Treasury Debt Market, Analyst Warns<\/h3>\n<\/div>\n<div class=\"flex flex-col gap-2.5 px-1 pt-2.5 pb-1\">\n<p class=\"m-0 line-clamp-2 text-xs leading-[1.3] !text-[#67656E]\">Lawrence Lepard, author of &#8220;The Big Print,&#8221; explained that even with CLARITY passing, demand for U.S. Treasuries used to back\u2026<\/p>\n<p><span aria-hidden=\"true\" class=\"flex items-center justify-center rounded-pill bg-[#4169E1] text-sm font-medium text-white h-[38px] w-full\">Read Now<\/span><\/div>\n<p><\/a><a aria-label=\"Read Now: Clarity Act Won\u2019t Save US Treasury Debt Market, Analyst Warns\" class=\"block overflow-hidden rounded-lg !bg-[#E8EDFA] p-[9px] no-underline focus-visible:outline-none focus-visible:ring-2 focus-visible:ring-[#4169E1] focus-visible:ring-offset-2 hidden md:flex md:flex-row md:gap-3 lg:hidden\" href=\"https:\/\/news.bitcoin.com\/clarity-act-wont-save-us-treasury-debt-market-analyst-warns\/\"><\/p>\n<div class=\"relative size-[150px] min-w-[150px] shrink-0 overflow-hidden rounded-[15px]\"><img alt=\"Clarity Act Won\u2019t Save US Treasury Debt Market, Analyst Warns\" loading=\"lazy\" decoding=\"async\" data-nimg=\"fill\" class=\"object-cover\" style=\"position:absolute;height:100%;width:100%;left:0;top:0;right:0;bottom:0;color:transparent\" sizes=\"150px\" srcset=\"\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=32&amp;q=75 32w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=48&amp;q=75 48w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=64&amp;q=75 64w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=128&amp;q=75 128w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=256&amp;q=75 256w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=384&amp;q=75 384w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=640&amp;q=75 640w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=828&amp;q=75 828w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=1080&amp;q=75 1080w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=1200&amp;q=75 1200w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=1920&amp;q=75 1920w\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=1920&amp;q=75\"\/><\/p>\n<div class=\"absolute left-2 top-2\"><img alt=\"Bitcoin.com News\" loading=\"lazy\" width=\"28\" height=\"28\" decoding=\"async\" data-nimg=\"1\" class=\"size-7\" style=\"color:transparent\" srcset=\"\/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=32&amp;q=75 1x, \/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=64&amp;q=75 2x\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=64&amp;q=75\"\/><\/div>\n<\/div>\n<div class=\"flex min-w-0 flex-1 flex-col justify-between gap-2\">\n<h3 class=\"m-0 line-clamp-3 text-xl font-bold capitalize leading-[1.17] tracking-[-0.4px] !text-[#1C1C1C]\">Clarity Act Won\u2019t Save US Treasury Debt Market, Analyst Warns<\/h3>\n<p class=\"m-0 line-clamp-2 text-sm leading-[1.3] !text-[#67656E]\">Lawrence Lepard, author of &#8220;The Big Print,&#8221; explained that even with CLARITY passing, demand for U.S. Treasuries used to back\u2026<\/p>\n<p><span aria-hidden=\"true\" class=\"flex items-center justify-center rounded-pill bg-[#4169E1] text-sm font-medium text-white h-[38px] w-full\">Read Now<\/span><\/div>\n<p><\/a><a aria-label=\"Read Now: Clarity Act Won\u2019t Save US Treasury Debt Market, Analyst Warns\" class=\"block overflow-hidden rounded-lg !bg-[#E8EDFA] p-[9px] no-underline focus-visible:outline-none focus-visible:ring-2 focus-visible:ring-[#4169E1] focus-visible:ring-offset-2 hidden lg:flex lg:flex-row lg:gap-4\" href=\"https:\/\/news.bitcoin.com\/clarity-act-wont-save-us-treasury-debt-market-analyst-warns\/\"><\/p>\n<div class=\"relative size-[150px] min-w-[150px] shrink-0 overflow-hidden rounded-[15px]\"><img alt=\"Clarity Act Won\u2019t Save US Treasury Debt Market, Analyst Warns\" loading=\"lazy\" decoding=\"async\" data-nimg=\"fill\" class=\"object-cover\" style=\"position:absolute;height:100%;width:100%;left:0;top:0;right:0;bottom:0;color:transparent\" sizes=\"150px\" srcset=\"\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=32&amp;q=75 32w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=48&amp;q=75 48w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=64&amp;q=75 64w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=128&amp;q=75 128w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=256&amp;q=75 256w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=384&amp;q=75 384w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=640&amp;q=75 640w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=828&amp;q=75 828w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=1080&amp;q=75 1080w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=1200&amp;q=75 1200w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=1920&amp;q=75 1920w\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F08%2Fus-debt-150x150.jpg&amp;w=1920&amp;q=75\"\/><\/p>\n<div class=\"absolute left-2 top-2\"><img alt=\"Bitcoin.com News\" loading=\"lazy\" width=\"28\" height=\"28\" decoding=\"async\" data-nimg=\"1\" class=\"size-7\" style=\"color:transparent\" srcset=\"\/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=32&amp;q=75 1x, \/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=64&amp;q=75 2x\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=64&amp;q=75\"\/><\/div>\n<\/div>\n<div class=\"flex min-w-0 flex-1 flex-col justify-center gap-2\">\n<p><h3 class=\"m-0 min-w-0 flex-1 line-clamp-2 text-2xl font-bold capitalize leading-[1.17] tracking-[-0.48px] !text-[#1C1C1C]\">Clarity Act Won\u2019t Save US Treasury Debt Market, Analyst Warns<\/h3>\n<p><span aria-hidden=\"true\" class=\"flex items-center justify-center rounded-pill bg-[#4169E1] text-sm font-medium text-white h-12 w-[180px] shrink-0\">Read Now<\/span><\/p>\n<p class=\"m-0 line-clamp-2 text-base leading-[1.3] !text-[#67656E]\">Lawrence Lepard, author of &#8220;The Big Print,&#8221; explained that even with CLARITY passing, demand for U.S. Treasuries used to back\u2026<\/p>\n<\/div>\n<p><\/a><\/div>\n<\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/community-bankers-demand-total-ban-on-stablecoin-rewards\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Community banks revived stablecoin reward concerns, swaying two Republican senators to oppose CLARITY. ICBA warned stablecoins could trigger a $1.3T deposit flight, cutting local bank lending by $850B. Growing opposition leaves CLARITY short of 60 Senate votes, threatening to kill the bill on Sept 15. Community [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":77452,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77451"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=77451"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77451\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/77452"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=77451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=77451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=77451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}