Citigroup CEO Jane Fraser backs U.S. crypto legislation

Citigroup CEO Jane Fraser has expressed support for upcoming U.S. cryptocurrency legislation, including the GENIUS Act and the CLARITY Act, noting that while improvements are needed, a regulatory framework would benefit the financial system.

Fraser revealed that Citigroup is exploring the issuance of a Citi-branded stablecoin, though the bank is currently prioritizing tokenized deposits. These deposits, which began rolling out in late 2024, are viewed as a more practical entry point because they operate within existing regulatory frameworks. Additionally, the bank plans to launch crypto custody services in 2026.

Despite her support for establishing rules, Fraser raised concerns regarding reward mechanisms for stablecoin holders. The banking industry fears that providing yields to stablecoin holders could cause deposits to migrate away from traditional banks, potentially reducing the capital available for lending and credit provision. This stance contrasts with some industry peers, such as JPMorgan Chase CEO Jamie Dimon, who has expressed stronger opposition to certain aspects of crypto legislation.