The head of Citigroup is taking a public stance on crypto regulation in the United States. Jane Fraser has stated she wants to see the Clarity Act passed — provided the bill is sufficiently improved before the scheduled Senate vote in September.

Behind this show of support lies a deeper tension between major US banks and the crypto industry — particularly over the question of yields offered by stablecoins. A standoff that could still derail the entire legislation.

Meanwhile, the legislative calendar is tightening. Lawmakers failed to push through a vote before the summer recess. Everything now hinges on the fall session.

Jane Fraser: Citi Positions Itself as a Major Force in Digital Assets

The Citigroup CEO is not mincing her words: “We want good regulation that supports innovation and encourages the safe adoption of digital assets,” she declared on Friday, August 14, 2026. She added that passing the Clarity Act would be “excellent for the system” as a whole.

This positioning is far from incidental. Citi bills itself as a leader in digital assets among traditional major banks, and Fraser intends to carry real weight in the legislative debate. The bank is not opposed to the bill — it wants to amend it to better protect its own interests and those of the broader traditional banking sector.

The Clarity Act was already passed by the House of Representatives last year, but has been stalled in the Senate since 2026. Despite this, the bill enjoys notable bipartisan support, with institutions such as Fidelity and Goldman Sachs, alongside several crypto lobbying groups and lawmakers from both parties, arguing that the current version is workable.

Stablecoins and Yields: The Sticking Point Threatening the Entire Bill

The main point of friction remains the question of yields on stablecoins. US banks fear that allowing crypto exchanges to offer attractive yields on stablecoin deposits could cost them a significant share of their customer base — a scenario that looks a lot like bank disintermediation accelerated by DeFi.

Fraser reiterated this concern on Friday, highlighting that smaller regional banks would be particularly vulnerable to such a deposit yield mechanism. She described a potential “damaging effect” on their business model — an argument that carries real weight in the corridors of Congress.

This tension has already had tangible consequences: Coinbase withdrew its support for the Clarity Act in January, after clashing with banking executives over the proposed ban on stablecoin yields. The largest US exchange believes this restriction would gut the bill of its value for the crypto industry. The September vote is shaping up to be a pivotal — and potentially explosive — moment for the future of crypto regulation in the United States.