8 major US banks just sent a letter to Senate begging them to nerf stablecoins in the CLARITY Act.
Their concern? Yield-bearing stables are eating their lunch. They're scared deposits will flow out of banks into $USDC/$USDT with rewards, crushing their ability to lend.
They also claim the bill's "deposit flight circuit breaker" kicks in way too late to stop the damage.
Translation: TradFi is terrified stablecoins will replace them. They want regulation to slow down the inevitable.
Bullish signal for stables. Banks don't lobby unless they're losing.
Their concern? Yield-bearing stables are eating their lunch. They're scared deposits will flow out of banks into $USDC/$USDT with rewards, crushing their ability to lend.
They also claim the bill's "deposit flight circuit breaker" kicks in way too late to stop the damage.
Translation: TradFi is terrified stablecoins will replace them. They want regulation to slow down the inevitable.
Bullish signal for stables. Banks don't lobby unless they're losing.
