Senator Cynthia Lummis (@SenLummis)

Some community banks are suggesting stablecoins are driving deposit flight. The data says otherwise: BofA shows household deposits rising across income groups this year, and the FDIC reports domestic deposits grew for a seventh straight quarter. Community banks actually outperformed the industry, posting 5% deposit growth. If the worry is the Clarity Act compromise itself, that’s backwards. Section 404 bars stablecoin issuers from paying anything that functions like interest, even disguised as rewards or points, and bans marketing stablecoins as deposits or FDIC-insured. It’s actually tougher than current law, not looser. The real story behind closing community banks isn’t stablecoins. It’s consolidation: 2,000 community banks lost in a decade, only 62 new ones formed, and the buyers are super regional banks, not crypto companies. The Banking Committee already built a nine-provision community bank package into the housing bill to help with deposit retention, on top of tightening stablecoin yield rules under Clarity. Killing the Clarity Act won’t help community banks. It just protects the status quo they say is broken.

North Korea's Lazarus Group and other bad actors thrive on gaps in our financial rules. The Clarity Act gives Treasury new sanctions authority and a safe harbor for companies to freeze suspicious transactions before the money moves.

History will remember this as the moment a president chose a higher standard of ethics than the law required of him. This agreement bans ALL federal officials — including the President — from issuing or sponsoring a digital asset for profit, with real enforcement and real penalties. Thank you, @POTUS! Let's get the Clarity Act passed NOW.

I want to thank my Democratic colleagues for their important contributions to this draft, and express my commitment to reaching a deal in the coming days that will allow this legislation to become law. Consumer protection and pro-innovation policy aren't opposites — this bill proves it.

I am encouraged that Chair Warsh supports the goals of the Fed’s skinny master account proposal. I strongly support the Fed finalizing this rule as soon as possible. Thank you, Governor Waller, for continuing to work hard on this. Our payment system is a public good, and any financial institution— new or old— who wants to comply with the law should have access to it. We should be encouraging businesses to do this, not creating arbitrary barricades.

Silicon Valley Bank’s collapse shook confidence in our banking system — and Americans still deserve a full accounting of what happened. I’m glad Chairman Warsh has publicly committed to full Fed staff cooperation with this investigation. More to come soon.

.@POTUS has made it clear: America must lead the world in AI. Data centers are how we get there, but with massive power demands come real responsibilities. Smart regulation means protecting ratepayers and protecting the grid. I've introduced legislation to do just that.