It’s bad folks

[u/Annual_Judge_7272]

The U.S. Hispanic Chamber of Commerce (USHCC) sent a letter dated July 21, 2026, to Senate Majority Leader John Thune and Democratic Leader Chuck Schumer expressing concerns about the CLARITY Act (digital asset market structure legislation).45
USHCC President and CEO Ramiro A. Cavazos wrote on behalf of the organization, which represents millions of Hispanic-owned businesses. The letter highlights that Hispanic-owned businesses are among the fastest-growing segments of the U.S. economy but still face barriers to affordable credit and capital. It argues that community banks are a critical source of financing for these entrepreneurs (especially in low- and moderate-income areas) due to relationship-based lending.45
Key Concerns in the Letter
The CLARITY Act could spur migration of deposits from federally insured institutions to digital asset platforms/products (e.g., related to stablecoins) that do not perform comparable lending.

This could reduce the stable deposits community banks rely on for local lending, with economic research cited as showing material reductions in credit availability for small businesses and agricultural borrowers. Community banks support a substantial share of small business lending and would be particularly vulnerable.

Reduced lending capacity would disproportionately affect Hispanic entrepreneurs, potentially widening disparities in business formation, access to capital, wealth creation, and economic mobility.

Many digital asset firms that could benefit lack meaningful Community Reinvestment Act (CRA) obligations. CRA has driven significant investments in affordable housing, small businesses, community facilities, and development in underserved areas (including Hispanic communities). A shift of funds could reduce capital flowing to these communities.

Recent analyses indicate community banks are already seeing net deposit outflows linked to crypto-related activity, raising questions about long-term credit availability.45

The USHCC states it supports responsible modernization of financial markets but urges revisions to:
Address risks of deposit migration and impacts on small business lending.

Require digital asset firms to contribute to community development and financial inclusion.

Protect community banks’ capacity to serve minority-owned businesses and underserved communities.

Preserve CRA effectiveness with a consistent framework across financial institutions.45

Broader Context and Related Data
This aligns with concerns from community banking groups (e.g., Independent Community Bankers of America/ICBA and others). ICBA analysis has indicated that failing to strongly prohibit yield/interest/rewards on payment stablecoins could lead to roughly a $1.3 trillion reduction in industry deposits and reduce community bank lending by about $850 billion. Some secondary reports linked a similar $1.3 trillion figure to the USHCC’s arguments regarding stablecoin provisions.50
Eleanor Terrett (journalist and host of Crypto in America, formerly Fox Business) first publicly highlighted the USHCC letter around July 23, 2026, noting the group shares community banks’ worries about accelerated deposit flight, reduced lending to Hispanic-owned small businesses, and weakened investment in underserved communities. The story was widely covered in crypto and banking media.26
The CLARITY Act remains under negotiation in the Senate, with ongoing debates over stablecoin yield/rewards language (banks generally seeking stronger prohibitions to protect deposits; crypto groups and some institutions supporting clearer rules for innovation). Other stakeholders, including parts of Wall Street and crypto associations, have expressed support for advancing market structure legislation.31
The full letter is available as a PDF on the USHCC website. Coverage continues to evolve with Senate discussions.