The Pennsylvania Association of Community Bankers says it has joined state bankers associations nationwide, urging the U.S. Senate to strengthen provisions of the Clarity Act overseeing stablecoin interest and yield and rewards programs.

In a Sept. 10 letter, banking organizations called for revisions to Section 10404 of the act to reinforce Congress’s longstanding intent that payment stablecoins function as transactional tools rather than store-of-value products that directly compete with bank deposits.

According to the Pennsylvania Association of Community Bankers, without these changes, the ambiguity in the current act could lead to a flight of deposits to stablecoins with consequences to communities.

A procedural vote in the Senate on the Clarity Act is scheduled for Sept. 15.