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Citigroup CEO Jane Fraser said she wants Congress to pass the Clarity Act, even as banks continue pressing lawmakers to change its treatment of stablecoin rewards.
Fraser told Fox Business on Thursday that the legislation would benefit the financial system. She said the banking industry has not stopped seeking revisions before the bill advances.
The dispute centers on rewards paid to stablecoin holders. Banks argue that yield-bearing products could pull deposits away from traditional lenders.
Crypto companies counter that broad restrictions would curb competition and slow innovation.
A Senate compromise would bar platforms from paying rewards solely for holding a stablecoin. It would still allow incentives tied to transactions and payments.
Fraser said deposit outflows could reduce banks’ ability to lend, particularly in communities that have limited access to large financial institutions.
Other banking leaders have taken a tougher position. JPMorgan Chase CEO Jamie Dimon has criticized the Clarity Act and its potential effect on the banking sector.
The bill is expected to face a procedural vote next month. If it clears the Senate, the stablecoin-reward language could become a renewed point of debate in the House.
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