Citigroup CEO Jane Fraser Backs CLARITY Act Despite Stablecoin Reward Concerns

Citigroup CEO Jane Fraser said she hopes the CLARITY Act passes, even though she remains concerned about how it treats stablecoin rewards. According to ChainCatcher, Fraser said Citigroup is still pushing for improvements to the bill.Fraser said allowing stablecoin platforms to offer rewards on user deposits could pull funds away from traditional banks and weaken their ability to provide loans and credit in some parts of the United States. She noted that the current bill bars platforms from offering rewards solely for holding stablecoins, but it would still allow incentives tied to trading and payment activity. The issue remains a major point of contention between the banking and crypto industries as the bill moves forward.