ICBA: Stablecoin legislation must protect role of community banks

ICBA told Congress that any legislation establishing a regulatory framework for stablecoins must address stablecoin risks without disintermediating community banks.

Details: In a statement for the record for a Senate Banking Committee Digital Assets Subcommittee hearing, ICBA said any stablecoin regulatory framework must:

• Apply consistent standards to both banks and nonbanks to prevent regulatory arbitrage.

• Preserve the integrity of Federal Reserve Master Accounts.

• Protect against risks posed by commercial and Big Tech issuance.

• Maintain community banks’ ability to utilize deposits to fund local lending.

ICBA Advocacy: ICBA recently encouraged the Trump administration to ensure regulatory clarity for banks and a level regulatory playing field between the banking and crypto sectors. ICBA also submitted a statement for a recent House Financial Services subcommittee hearing on digital assets.

Outlook: ICBA will continue to engage with policymakers on digital assets issues as regulatory frameworks are considered.