Trump Administration’s Stablecoin Move Ahead of CLARITY Vote: Is There a Deposit Flight?

The Trump administration is preparing a data-driven defense against the claim that stablecoins will reduce bank deposits ahead of the CLARITY Act vote.

The Trump administration is making its final move before the vote to convince Senate Republicans to support the CLARITY Act. According to reports from Semafor, the bill is scheduled for a procedural vote on Tuesday.

The White House Council of Economic Advisers plans to release an interactive tool to compare stablecoin growth with deposits at community banks. It is intended for users to create scenarios by setting different parameters and examine the results. The administration argues that current data does not show a significant relationship between the growth of stablecoins and large-scale deposit outflows from banks.

Stablecoin deposit debate continues ahead of the vote

This tool will be used against the banking groups’ objections to the stablecoin regulations in the bill. While the groups state that the latest changes have not addressed their concerns, some Republican senators are also uneasy about the reward mechanisms that could be offered to stablecoin holders.

Some Republican lawmakers have signaled that they may side with the banks and vote “no” on the bill. Texas Senator John Cornyn is reported to be among those who could vote “no” on Tuesday. Meanwhile, some Democrats close to cryptocurrencies do not find the ethical restrictions regarding President Donald Trump in the bill to be sufficient.