Coinbase CPO counters claims on CLARITY Act stablecoin interest clause

Coinbase Chief Policy Officer Faryar Shirzad refuted the American Bankers Association's assertion that the CLARITY Act's provision allowing interest on stablecoins would lead to deposit outflows from community banks. Shirzad stated that there is no clear correlation between stablecoin interest and bank deposits. He noted that Coinbase has offered interest on USDC for over four years, during which community bank deposits increased by approximately 482 billion dollars, or 26%, from June 2019 to March 2026. Additionally, Shirzad emphasized that the CLARITY Act would provide banks with their broadest legal authority since the 1999 Gramm-Leach-Bliley Act, covering areas such as custody, staking, lending, payments, and market-making, with community banks expected to benefit the most.

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