Citigroup CEO Jane Fraser has publicly urged U.S. lawmakers to pass a “good” version of the CLARITY Act, adding one of Wall Street’s largest banks to the push for clearer federal rules on digital assets. Speaking with Fox Business, Fraser said the legislation would generally strengthen the financial system but warned that provisions around stablecoin rewards still need refinement.
The bill, formally known as the Clarity for Payment Stablecoins Act, is designed to establish a federal regulatory framework for payment stablecoins, covering issuance, reserve backing, and redemption requirements. It has become a focal point of congressional debate over how digital assets should be treated under U.S. law.
Fraser’s intervention moves the discussion beyond crypto-native lobbying. Support from a systemically important bank elevates the debate into mainstream financial policy. Her conditional endorsement signals that major financial institutions are watching the legislative process closely, and that clear rules could encourage broader institutional participation in digital assets.
The CLARITY Act has already seen procedural movement in Congress. A Senate committee advanced crypto legislation in what Senator Alsobrooks’ office described as a milestone for digital assets, and a cloture filing was made on the motion to proceed to the bill. The SEC Chair has also reportedly called on the Senate to pass the CLARITY Act, while Senator Elizabeth Warren previously called for an SEC probe after an earlier setback on the measure.
One of the most debated elements is whether stablecoin holders can earn interest or rewards. Many stablecoin issuers currently do not pass on yield from reserve assets to users. The bill’s approach raises legal questions about whether such rewards would be treated as securities or bank deposits, potentially triggering additional regulatory oversight. Fraser indicated that work is ongoing to improve the bill, particularly around these stablecoin reward provisions.
For Bitcoin markets, the stakes center on institutional access. Clearer market structure and custody rules could shape how banks and asset managers offer BTC services. For the broader digital asset market, a workable U.S. framework would provide legal certainty for stablecoin issuers and users, potentially reducing systemic risks. However, the final bill text remains unresolved, with banking groups and crypto advocates clashing over key provisions.
Key watchpoints now include amendments, specific bill language, and the timing of committee and floor action in the Senate Banking Committee. Fraser’s emphasis on a “good” bill, rather than blanket support for any draft, keeps the focus on quality over speed.
