Citigroup CEO backs Clarity Act but warns stablecoin rewards could hurt banks

Citigroup CEO Jane Fraser has backed passage of the CLARITY Act while continuing to push for changes to its stablecoin reward rules, keeping the banking industry’s main concern with the crypto bill alive ahead of a Senate procedural vote expected next month. Summary Citigroup CEO Jane Fraser supports passing the CLARITY Act but wants changes to its stablecoin reward rules. Fraser warned that stablecoin rewards could pull deposits from banks and reduce their ability to provide credit. A Senate compromise would ban rewards for simply holding stablecoins while allowing incentives tied to payments and transactions. The stablecoin yield dispute remains a key issue between banks and crypto firms ahead of the Senate vote. Fraser told Fox Business on Thursday that Citigroup still wants lawmakers to improve parts of the legislation, but she supports getting a workable version through Congress because she believes the bill would benefit the financial system. “So, we have not given up on pushing to get some improvements made to the bill, but we would like to see a good bill go through,” Fraser said. “I think it would be excellent for the system.” Her support puts Citigroup in a less confronta...