ICYMI: Hawley Warns of Risks to Farmers and Community Banks

ICYMI: Yesterday, Sen. Josh Hawley announced that he would oppose the Clarity Act as written, citing concerns from farmers, local communities, and community banks about the bill’s stablecoin rewards loophole.

Politico reported that Hawley said he would vote against advancing the bill unless he receives “some assurance that they’re going to work on [the rewards loophole]."

His message is clear: the loophole needs to be fixed before the bill moves forward.

Missouri communities are warning that the bill could harm community banks.

• "I’m going to vote with my state on this," Hawley told Politico. "I can tell you that my state right now — agriculture folks, local community people — are very, very worried about the effect on community banks. They are blowing me up over it."

Deposit flight in small towns could jeopardize the agricultural loans farmers and ranchers rely on.

• "Farmers and ranchers, in particular, are very, very concerned that deposit flight in small towns could absolutely kill their ability to get ag loans. So that needs to be fixed."

Hawley’s warning shows how deposit flight from small communities could mean fewer loans for farmers, ranchers, and local businesses. A modern, strong financial services sector is essential to keep credit flowing to Main Street and communities across the country. Congress should establish clear rules for digital assets—but not at the expense of community lending. The rewards loophole needs to be fixed before the Clarity Act moves forward.

For more updates like this, sign up for The Ledger Project’s emails here.