American Bankers Association CEO backs Clarity Act, says banking and crypto can coexist

The top lobbyist for America’s banking industry just said something that would have been unthinkable a few years ago: crypto legislation is good, actually. Rob Nichols, president and CEO of the American Bankers Association, publicly endorsed the Digital Asset Market Clarity Act, commonly known as the CLARITY Act, while calling for narrow amendments to protect community banks. What the ABA actually wants Nichols isn’t writing the crypto industry a blank check. His support comes with conditions, and those conditions center on a very specific concern: stablecoin yields pulling deposits away from small-town banks. The ABA has issued statements on July 13 and July 28, 2026, warning that certain provisions in the bill could inadvertently encourage customers to move their money from community bank accounts into stablecoin products offering competitive returns. If a stablecoin can pay you more than your local savings account, your community bank loses deposits, which means it has less money to lend to the small business down the street. Nichols described the fixes he’s seeking as “tiny” and “surgical.” He’s signaling to lawmakers that the ABA isn’t trying to kill the bill. It’s trying to t...