Jane Fraser, chief executive of Citigroup, said the bank supports passage of the CLARITY Act, the proposed stablecoin legislation now moving through Congress, even as she flagged concerns about provisions governing yield on stablecoin reserves.
Fraser made the statement in a Fox Business interview, saying the bank wants "a good bill to go through" despite pushing for amendments. The CLARITY Act, introduced in 2023, would establish a federal framework for stablecoin issuers and has drawn backing from major financial institutions and crypto firms seeking regulatory certainty. The bill's provisions on how stablecoin reserves can be deployed and what returns they generate have been a point of contention between traditional banks and crypto platforms.
Citigroup is among the largest custodians of digital assets globally and has positioned itself as a bridge between traditional finance and crypto markets. Fraser said the bank has "not given up on pushing to get some improvements made to the bill."
The stablecoin yield issue centers on whether reserve assets backing stablecoins can generate returns for issuers, a mechanism that crypto platforms rely on for revenue and that traditional banks view as either competitive advantage or risk management question depending on the structure. The CLARITY Act's current language restricts how much yield can be retained versus passed to token holders, a constraint some issuers have said could affect their business models.
Fraser's comments come as the House and Senate continue negotiations on the bill's final text. Multiple financial institutions have submitted comment letters on the legislation, with traditional banks supporting passage and crypto-native firms seeking revisions to yield and custody provisions. The bill has bipartisan support but faces technical hurdles in reconciling different versions from each chamber.
Citi's backing shows the measure maintains traction among systemically important financial institutions even as specific provisions remain contested. Passage would create the first federal stablecoin framework in the United States, replacing a patchwork of state and federal regulators currently overseeing the market.
