Deep Tide TechFlow message: On July 29, according to BitcoinNews, 134 bank association executives and banking officials in the United States sent a letter to the Senate leadership, urging them to amend Section 10404 before the final passage of the CLARITY Act to strengthen restrictions on interest, yields, and similar incentive measures for payment stablecoins.

The co-signers said that if stablecoins are allowed to attract and retain funds through rewards, incentives, or other arrangements, it could weaken the deposit base of banks that support loans to families, small businesses, farmers, and local employers, and affect the sources of community credit funding. The crux of the dispute is whether payment stablecoins should be used only as a transaction tool, rather than as holding products with deposit-like storage and retention functionality.