Independent Community Bankers of America (ICBA) says consumers are concerned digital assets will harm community banks.
ICBA President and CEO Rebeca Romero Rainey says polls of Americans prove that ““We strongly support community bank views amid the ongoing debate over digital asset market structure.”
Rainey addresses the stablecoin yield debate, which he dislikes because it could force legacy banks to compete and increase interest payments to depositors. This could impact the profitability of traditional banks as consumers earn more for their money and leave less money with banks. Yield or interest payments are the biggest problem for stablecoin holders CLARITY ActCrypto market infrastructure legislation that will help power the future of finance by improving financial services for consumers and businesses.
ICBA’s demand survey:
- 65 percent say it is important for policymakers to discuss crypto policies to prevent digital asset policy from harming bank lending in local communities.
- 62 percent say policymakers should ensure crypto policy protects consumers’ access to insured deposit accounts.
- 74% say banking with a bank in their local community is important to them.
- 74% say it is important for the institution to be part of the regulated banking system when deciding where to place money and investments.
- 73% say it is important for banks to make lending decisions locally, within the community in which they operate.
Of course, survey questions can be crafted to direct a preferred response.
Patrick IntelligenceThe Executive Director of the White House President’s Advisory Council on Digital Assets was angered by ICBA’s claims and said the lobby group “It does a great disservice to its members in this regard.”
intelligence stated In X:
“…the outright ban on stablecoin rewards is dead on arrival. If ICBA manages to beat CLARITY on this issue (doubtful), their “reward” will be control by GENIUS. This, if ICBA’s argument is to be believed, would be disastrous for its members. As they say: play stupid games, win stupid rewards. Rather than engaging in continued lobbying malpractices, ICBA should enthusiastically support the compromise proposed by Senators Tillis and Alsobrooks.” They reached an agreement that directly addresses the problem of idle productivity in a way that could become de facto law.”
The legacy banking industry used its lobbying skills, money, and FUD to delay passage of the CLARITY Act. This is harmful to consumers. Competition is good and banks can also issue stablecoins. They may also offer returns or rewards to stablecoin holders. The only thing hurting community banks is the industry itself.
