CLARITY Act Debate Intensifies Over Stablecoin Rewards and Bank Deposits

The CLARITY Act debate has intensified over stablecoin rewards and their impact on community banks. Supporters argue available deposit data does not show stablecoins causing widespread deposit flight. Senator Cynthia Lummis pushed back against claims from some community banks that stablecoins are driving deposits away. The disagreement centers on stablecoin rewards and bank deposits.