Citigroup CEO Jane Fraser has expressed support for the passage of the Clarity Act, calling it a positive outcome for the financial system despite ongoing industry concerns. While Fraser and other banking leaders worry that a compromise allowing transaction-tied stablecoin yields could trigger deposit outflows and reduce lending in underserved communities, the banking sector remains deeply divided. The bill faces a key Senate procedural vote in September 2026 before potentially heading to the House.
Fraser's support for Clarity Act
- ▪Citigroup Chief Executive Officer Jane Fraser stated on August 13, 2026, that the banking industry has not given up on efforts to improve the Clarity Act before the legislation advances.
- ▪Citigroup Chief Executive Officer Jane Fraser stated on August 13, 2026, that she wants Congress to pass the Clarity Act, calling it a positive outcome for the financial system.
Stablecoin yield provision debate
- ▪A compromise in the Clarity Act, drafted by Democratic Senator Angela Alsobrooks and Republican Senator Thom Tillis, would ban yields paid simply for holding stablecoins while allowing returns tied to transactions and payments.
- ▪Crypto companies argue that broad restrictions on stablecoin rewards in the Clarity Act would curb competition and slow innovation.
Banking industry split on legislation
- ▪The banking industry is split over the Clarity Act, with JPMorgan Chase Chief Executive Officer Jamie Dimon taking a hard line against the bill and criticizing Coinbase Chief Executive Officer Brian Armstrong in May 2026.
- ▪Republican senators face pressure to choose between supporting traditional banks or the cryptocurrency industry regarding the Clarity Act's stablecoin provisions.
Bank deposit outflow concerns
- ▪Citigroup Chief Executive Officer Jane Fraser warned that stablecoin yield features allowed under the Clarity Act could pull deposits away from traditional lenders.
- ▪Citigroup Chief Executive Officer Jane Fraser stated that deposit outflows from traditional banks could reduce their ability to provide loans and credit in communities with limited access to large financial institutions.
Congressional vote and debate expectations
- ▪Summer Mersinger, Chief Executive Officer of the Blockchain Association, stated that the stablecoin yield provision could become a flashpoint again if the Clarity Act passes the Senate and moves to the House of Representatives.
- ▪Summer Mersinger, Chief Executive Officer of the Blockchain Association, noted that there had been no discussion of yield-related issues during the House of Representatives' initial review of the Clarity Act.
- ▪The Clarity Act is awaiting a procedural vote in the Senate, which is expected to take place in September 2026.
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