Why the banking industry is against the CLARITY Act # >…
0 reactions
Why the banking industry is against the CLARITY Act
# > Article highlight.
In the days before a key Senate vote, the American Bankers Association **sent more than 8,000 letters trying to change one provision of the CLARITY Act.**
The fight is not really about crypto. It is about whether stablecoins are allowed to compete with bank deposits, and the answer could reshape both industries.
A yield-bearing stablecoin offers a stable dollar value, easy access and transferability on crypto rails, and interest funded by the reserves, **which is to say it offers a substitute for a bank deposit, potentially a more convenient and higher-yielding one, outside the banking system.**
If holders can earn a competitive return on a stablecoin that moves freely on the blockchain, why keep money in a bank account paying little interest? **That is the question banks do not want their customers asking.**
#cryptocurrency
# > Article highlight.
In the days before a key Senate vote, the American Bankers Association **sent more than 8,000 letters trying to change one provision of the CLARITY Act.**
The fight is not really about crypto. It is about whether stablecoins are allowed to compete with bank deposits, and the answer could reshape both industries.
A yield-bearing stablecoin offers a stable dollar value, easy access and transferability on crypto rails, and interest funded by the reserves, **which is to say it offers a substitute for a bank deposit, potentially a more convenient and higher-yielding one, outside the banking system.**
If holders can earn a competitive return on a stablecoin that moves freely on the blockchain, why keep money in a bank account paying little interest? **That is the question banks do not want their customers asking.**
#cryptocurrency
| 4,000 mlx | |
| 7 | |
| 0 |