ICBA chair: Stablecoins cannot become deposit substitution

On a new podcast, ICBA Chair Alice Frazier said the Clarity Act focus on keeping stablecoin as a payment tool and not allow it to become a deposit substitute.

Details: Appearing on the This Month in Banking podcast, Frazier—president and CEO of Potomac Bank in Charles Town, W.Va.—said that if stablecoins are able pay interest and rewards on deposits, that will affect community banks and their ability to lend locally.

ICBA View: ICBA continues working to ensure the Clarity Act includes a robust prohibition on stablecoin yield to avoid harming community bank lending in local communities.

Media Campaign: Frazier’s podcast appearance follows a recent Banking Dive interview with ICBA President and CEO Rebeca Romero Rainey on the issue and previous coverage on ICBA efforts in The Wall Street Journal, Politico, Punchbowl News, Reuters, Bloomberg Television and elsewhere.

Community Banker Advocacy: With lawmakers home for the August congressional recess, community bankers can utilize ICBA’s Be Heard grassroots action center to contact their senators, its Meetings on Main Street guide to conduct meetings with lawmakers, and the messaging and social media tools on the Main Street Over Crypto to raise awareness of the stablecoin yield issue.

LISTEN TO THE PODCAST