A coalition of 78 banking groups, led by the American Bankers Association, is urging lawmakers to tighten the CLARITY Act by restricting how payment stablecoin issuers can reward users. In a letter sent to Senate leaders ahead of a July 17 hearing, the groups proposed amendments to Section 404 of the bill, which governs stablecoin rewards. The proposals focus on limiting mechanisms that banks argue could make payment stablecoins function more like deposit products. {tweet} The current draft of the CLARITY Act prohibits returns paid “solely” for holding stablecoins. Banking groups argue that this wording leaves room ... (full story)