Former CFTC Chairman Giancarlo Proposes Banks Earn Returns with Stablecoin Deposits

Christopher Giancarlo, former CFTC chair, suggests banks integrate stablecoin deposits to offer customers returns, arguing this could advance the Clarity Act and benefit both banks and crypto exchanges. He stresses that stablecoins do not cause deposit flight but serve as payment and settlement tools, and warns that a lack of comprehensive crypto regulation harms banks and consumers.

Giancarlo's Proposal Christopher Giancarlo, the former chair of the U.S.
Commodity Futures Trading Commission, has called on banks to incorporate stablecoin deposits into their product offerings, allowing customers to earn interest on these digital assets.
Clarity Act and the Solution Giancarlo argues that the impasse preventing the Clarity Act’s passage can be resolved by enabling banks to generate returns from stablecoins.
He believes this approach would create a win‑win for both traditional banks and crypto exchanges.
Role of Stablecoins The former regulator emphasized that stablecoins do not drive deposit outflows; instead, they function as payment and settlement instruments.
He noted that stablecoins are not a substitute for established savings vehicles.
Benefits for Banks Offering interest on stablecoin deposits would provide a new revenue stream for federal and community banks, especially smaller institutions that could modernize their payment infrastructures.
For crypto exchanges, smoother fiat‑to‑crypto transitions and improved liquidity management would follow.
Regulation Gap Warning Giancarlo warned that the absence of a comprehensive crypto regulatory framework would harm banks and consumers, stifle economic dynamism, and push innovation abroad.
He described the current situation as “regulatory chaos.”

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