[American Bankers Association: Supports CLARITY Act Passage but Calls for Tightening Stablecoin Reward Provisions] BlockBeats News, August 19 — Rob Nichols, President and CEO of the American Bankers Association (ABA), stated that the goal is to strengthen rather than obstruct the passage of the CLARITY Act. He believes the digital asset industry requires a clear regulatory framework, but a key provision in the act regarding stablecoin rewards still needs further tightening. Nichols pointed out that the 2025 GENIUS Act has already prohibited stablecoin issuers from paying interest or returns to holders, with current debates focusing on whether related parties, such as crypto trading platforms, can offer rewards similar to interest. He argued that if stablecoin wallets use such mechanisms to attract bank deposit outflows, it could weaken the funding base banks rely on for small business loans, mortgage lending, and agricultural financing. The American Bankers Association recommends revising the act's language to prohibit stablecoin rewards that are "substantially similar" to interest payments and removing certain phrases that may cause ambiguity. Nichols emphasized that these changes would not prevent crypto companies from offering other reward programs but would avoid reward mechanisms evolving into disguised deposit interest. He also stated that the American Bankers Association is urging senators to amend the relevant provisions before the September vote and believes the U.S. can be both the global banking hub and the global crypto hub, provided clear and consistent regulatory rules are established. [Original Link]