Senator Josh Hawley (R-MO) said Wednesday he will vote against advancing the Clarity Act unless lawmakers strengthen protections for community banks, making him the first Republican to publicly oppose the bill.
Why Hawley Is Voting No?
Hawley on Wednesday told Politico that farmers, ranchers, and community bankers in Missouri are flooding his office with concerns that stablecoin rewards programs could pull deposits away from local banks and cut off agricultural lending in small towns.
“I’m going to vote with my state on this,” Hawley said. “My state right now — agriculture folks, local community people — are very, very worried about the effect on community banks. They are blowing me up over it.”
Banking groups want the bill to include stronger restrictions on crypto rewards programs, arguing they function like interest on deposits and could trigger deposit flight from traditional checking and savings accounts.
