Senator Cynthia Lummis has called on traditional banks to adopt stablecoins as a new financial opportunity, framing them as a faster and cheaper payment rail for customers. Her comments come as legislative efforts, including the CLARITY Act, have stalled due to banking industry opposition over concerns about deposit competition and stablecoin rewards. Treasury Secretary Scott Bessent urged passage of the bill, while analysts warn the delay creates market uncertainty and underscores stablecoins’ strategic importance.
Senator Cynthia Lummis urged traditional banks to embrace stablecoins, calling them a faster, cheaper payment rail and “an entirely new financial product that they can offer to their customers.” She made these remarks during an interview with Fox Business, pushing back against banking industry opposition that has stalled key crypto legislation. Lummis stated that stablecoins, with safety mechanisms developed with the Federal Reserve, allow money to be transmitted more quickly than through existing bank structures.
Negotiations over the market structure bill are deadlocked after its scheduled markup was canceled. Banks and credit unions have warned senators that stablecoin rewards could trigger deposit flight from traditional accounts, particularly at community banks. Lummis noted that bank resistance targets the GENIUS Act, with lenders seeking to prevent stablecoin products that resemble interest or bank-type products.
During Senate testimony, Treasury Secretary Scott Bessent stressed that the CLARITY Act must pass, adding that participants who oppose it “should move to El Salvador.” Despite the delay, Lummis mentioned that Senate Majority Leader John Thune has assured floor time will be reserved for the legislation later this spring. Digital asset analyst Nic Puckrin of Coin Bureau said the delays represent a real anticlimax that will keep a cap on digital asset prices.
Puckrin stated stablecoins have strategic significance amid dollar weakness, calling them a backdoor to strengthen the dollar. He added, “Whichever way the chips fall, though, it’s clear stablecoins will remain a competitor to bank deposits.” Lummis argued that stablecoins represent new revenue streams for banks through custody services and faster payment mechanisms that compete with debit cards.
