The U.S. community banking industry has launched a public campaign opposing the Clarity bill, a crypto market-structure measure under discussion in the U.S. Senate.

On June 12, blockchain outlet CoinPost reported that the Independent Community Bankers of America (ICBA) announced on June 11 the start of an advertising campaign targeting the crypto industry.

The central issue is a stablecoin rewards provision. ICBA argued that rapid expansion of crypto products and services could pose risks to communities and consumers. It estimated that allowing yields or rewards for stablecoin holders could lead to $1.3 trillion in deposit outflows and an $850 billion decline in lending.

ICBA stressed that community banks account for about 60 percent of U.S. loans under $1 million to small and medium-sized businesses and more than 80 percent of agricultural loans, and provide $4.1 trillion in loans to communities. Rebecca Romero Rainey (레베카 로메로 레이니), ICBA chief executive, said community banks are the foundation of local economies and Americans do not fully understand the risks of creating loopholes for crypto companies.

The clash intensified around the Clarity bill now under Senate review. The bill includes provisions to establish, for the first time, a federal regulatory framework for the crypto industry. The Senate Banking Committee passed the bill on May 15 by 15 votes to 9.

At the heart of the controversy is how far to allow rewards on stablecoin balances. During committee review, lawmakers adopted a provision to ban passive rewards for simple holding while allowing rewards linked to specific actions such as using stablecoins for transactions. ICBA said that was not enough and called for tougher regulation. The advertising campaign is also aimed at conveying these concerns directly to Congress and the public.

A prominent banking executive also expressed concern publicly. JPMorgan Chase CEO Jamie Dimon (제이미 다이먼) criticised the current bill in a May 29 Fox Business interview, saying it effectively allows crypto companies to pay interest without bank-level safeguards. He said the bill would ultimately fail if it passed in its current form and that JPMorgan would not be involved at all.

The crypto industry pushed back immediately. Cody Carbone (코디 카본), CEO of the Digital Chamber, criticised ICBA's campaign, saying it was not about protecting Main Street but about shielding an outdated business model from competition. Summer Mersinger (서머 머싱어), CEO of the Blockchain Association, also said she did not agree with ICBA's claims, adding that the new provisions protect consumers and bring crypto into a regulatory framework for the first time.

The bill's chances of passage remain uncertain. A JPMorgan analyst said in a recent report that three steps remain: securing 60 votes on the Senate floor, reconciling text with the House, and obtaining the president's signature. The analyst also said that after the summer recess, the review period could be limited to about 8 weeks due to preparations for the midterm elections, narrowing the scope for legislation this year.

The confrontation over the Clarity bill is spreading beyond a simple industry dispute into an issue that will shape the direction of stablecoin regulation and competitive dynamics in finance. How the stablecoin rewards provision is adjusted during the Senate floor vote is expected to be the main point to watch.