The biggest number in the bank-versus-stablecoin fight is still the yield one, and Treasury's comment window on the GENIUS Act issuance rules closes today with the Bank Policy Institute and the ABA on the file next to Coinbase and Circle.
ICBA, the community-bank lobby, put the cost of a yield ban at $1.3 trillion of deposits and $850 billion of community-bank lending on 27 August. The White House Council of Economic Advisers has pushed back on it twice. Its April report has a ban adding about $2.1 billion of bank lending, roughly 0.02% of total loans, and the 15 September update moves about $54.4 billion out of a roughly $300 billion stablecoin market into deposits and still gets the same $2.1 billion, because stablecoin reserves mostly sit in the banking system anyway.
That's two lending figures about 400 times apart. If you follow $CRCL or $COIN on these headlines, I think the noise around the fight tells you very little about how much money would actually move... I'll be watching whether either number shows up in what Treasury writes next.
#Stablecoins #GENIUSAct #Crypto #Banking #Macro
ICBA, the community-bank lobby, put the cost of a yield ban at $1.3 trillion of deposits and $850 billion of community-bank lending on 27 August. The White House Council of Economic Advisers has pushed back on it twice. Its April report has a ban adding about $2.1 billion of bank lending, roughly 0.02% of total loans, and the 15 September update moves about $54.4 billion out of a roughly $300 billion stablecoin market into deposits and still gets the same $2.1 billion, because stablecoin reserves mostly sit in the banking system anyway.
That's two lending figures about 400 times apart. If you follow $CRCL or $COIN on these headlines, I think the noise around the fight tells you very little about how much money would actually move... I'll be watching whether either number shows up in what Treasury writes next.
#Stablecoins #GENIUSAct #Crypto #Banking #Macro