Citibank (C.US) CEO backs “Clarity Act”: stablecoin reward terms need to be improved

According to Woofun AI, Citigroup (C.US) CEO Jane Fraser clearly expressed support for the US “Clarity Act” and viewed it as a key measure to strengthen the financial system, but emphasized that the provisions on stablecoin rewards needed to be improved urgently to eliminate potential compliance risks caused by vague legal characterization.

The bill, officially known as the “Clear Payment Stablecoin Act”, is a proposed US federal law aimed at establishing a clear regulatory framework for payment stablecoins. Its core goal is to regulate the issuance, guarantee and redemption methods of stablecoins, thereby protecting consumers' rights and maintaining financial stability. As the focus of congressional digital asset regulation discussions, the promotion of the bill is seen as an important signal to clarify federal regulations and push more institutions to participate in the digital asset field. Fox Business Channel previously reported Frazer's views, reflecting that major financial institutions are closely monitoring this legislative process. Although support is conditional, clear rules are expected to accelerate industry integration.

The controversy focused on the legal characterization of paying interest or rewards to stablecoin holders. Currently, most issuers do not allocate returns on reserve assets to users, and the bill's treatment of this raises questions about whether such rewards should be treated as securities or deposits, which in turn may trigger additional regulatory requirements.

According to Woofun AI, the banking industry is eager to clarify the link between stablecoin rewards and existing financial regulations (especially interest-bearing account regulations). Frazer indicated that efforts are currently being made to improve the relevant provisions to ensure a clear path of compliance.

The circulation of stablecoins has reached the level of several billion dollars, and their application in the field of payments and transactions has attracted the attention of regulators around the world. A clear US regulatory framework can provide legal certainty and reduce potential risk; conversely, poorly designed regulations may stifle innovation or breed room for arbitrage.

Although banks are cautious due to unclear legal environments, Fraser's support reflects the industry's urgent need for clear rules. If the bill is passed with reasonable provisions, it will pave the way for wider use of stablecoins and achieve a balance between promoting innovation and protecting consumers.