Eight banking associations: CLARITY Act circuit breaker mechanism is not an effective guarantee

Eight banking trade groups have sent a letter to the US Senate, pointing out that the deposit outflow circuit breaker mechanism in the CLARITY Act is only activated after a large-scale deposit outflow occurs and is not an effective safeguard measure. They call for tightening the provisions related to stablecoin rewards and plugging the loophole that allows stablecoin balances to receive interest payments. (Source: Eleanor Terrett)