Citi CEO Backs CLARITY Act but Warns Stablecoin Rewards Could Hurt Bank Deposits

Highlights:

• Citi CEO Jane Fraser supports clear crypto rules that encourage innovation while promoting safer digital asset adoption.
• Fraser wants changes to the CLARITY Act, especially around stablecoin rewards and their impact on bank deposits.
• Citi says strong crypto legislation should protect competition, lending access, and the financial system from crime risks.

Citigroup CEO Jane Fraser has backed clear rules for digital assets as U.S. lawmakers continue working on crypto market structure legislation. Fraser said Citi supports regulation that allows innovation while helping the financial system adopt digital assets safely. Fraser made the comments during an August 13 interview with Cheryl Casone on Fox Business’ Mornings with Maria. The discussion turned to the CLARITY Act and the debate over stablecoin rewards. Fox Business published the 14-minute interview on the same day.

Speaking about Citi’s position in the crypto sector, Fraser said:

“As a bank, we are a leader in digital assets. Many are fantastic technology. We want to have good regulation that supports innovation, and also encouraging safe adoption of the capabilities digital assets.”

Her comments show that Citi is open to wider use of blockchain and digital asset technology. However, the bank also wants rules that address risks to the traditional financial system.

LATEST: 🏦 Citi CEO Jane Fraser says the bank is "a leader in digital assets" and supports crypto regulation as long as it "encourages the safe adoption" of the technology. pic.twitter.com/fyxYIDihHI

— CoinMarketCap (@CoinMarketCap) August 14, 2026

Citi CEO Wants Improvements to Crypto Legislation

Fraser said Citi has not stopped seeking changes to the legislation. One concern involves rewards linked to stablecoins and the possible impact on bank deposits. Banks rely on deposits to fund lending to households and businesses. Fraser said smaller banks are especially important because they provide credit in rural communities across the United States.

Therefore, she warned that reward programs that pull money away from bank deposits could reduce the amount of funding available for lending. Fraser also called for a level playing field between banks and crypto companies. She argued that similar financial activities should face similar regulatory requirements. She also raised concerns about financial crime. In her view, strong legislation should support digital asset innovation without creating gaps that could be used for illegal financial activity.

Jane Fraser Says a Good CLARITY Act Would Benefit the Financial System

Despite seeking changes, Fraser made clear that Citi wants lawmakers to move forward with effective crypto legislation. “We have not given up on pushing to get some improvements made to the bill, but we would like to see a good bill go through. I think it would be excellent for the system,” she said.

The comments put Citi in support of broader regulatory clarity for the U.S. digital asset market, although the bank still wants changes to some provisions. Fraser’s position also reflects the growing involvement of major U.S. banks in digital assets. Citi has been developing blockchain-based financial services while traditional financial institutions increasingly explore tokenization, stablecoins and blockchain payments.

Meanwhile, the CLARITY Act remains stalled in the U.S. Senate. Lawmakers left Washington for the August recess without voting on the bill. Senate Majority Leader John Thune has filed for a September 15 procedural vote, which would require 60 votes to advance the legislation. Lawmakers are still divided over issues including stablecoin rewards, financial crime safeguards and ethics rules.

🚨NEW: Leader Thune’s office is telling crypto industry leaders today that the majority leader still intends to file cloture on the motion to proceed to the Clarity Act before lawmakers leave for August recess, per multiple sources.

The move would tee up a vote on the Clarity…

— Eleanor Terrett (@EleanorTerrett) August 7, 2026