Bank Policy Institute Highlights Gaps in New Clarity Act Stablecoin Bill Regarding Illicit Finance and Yield

The Bank Policy Institute (BPI) has issued a statement in response to the newly updated Clarity Act stablecoin bill, expressing concerns that the text still contains shortcomings regarding illicit finance and interest-like payments. BPI supports a regulatory framework for digital assets that protects access to credit, prevents criminal activity, and safeguards national security. However, they argue that the current language could still allow for ways to pay interest and yield for holding stablecoins, potentially siphoning bank deposits and threatening local lending. Additionally, BPI notes that the Clarity Act continues to have Anti-Money Laundering (AML) gaps that could promote illicit finance pathways and jeopardize U.S. national security.