🚨 The Chair of the House Financial Services Committee, Patrick McHenry, explains why the banking industry’s arguments for the “Clarifying Act” are pure fiction:
“The banking industry’s main lobbying effort regarding the “Clarifying Act” is to argue that by allowing stablecoin products to offer yields, it will cause a massive flight of deposits. The fact is, stablecoin yield products have been on the market for four or five years.”
“You haven’t seen a flight of deposits. Large bodies of research from universities, the Fed, and other government entities show that the fight against deposit flight is a made-up story.”
On the banking industry’s credibility on this issue:
“The banking lobbying groups have not prevented the demise of small banks in the United States. Compared to before the financial crisis, we have 2,000 fewer banks. This is largely due to costs for U.S. banks. The banking lobbying groups have also not addressed the problem in any substantive way. So they’ve turned their anger toward crypto.”
Historical parallel:
“In the early 1980s, the banking industry went through a crazy fight with money market mutual funds. Fidelity invented the product. They lost that war. Money market funds are now provided by banks. Similarly, you’ll see stablecoin products offering yields, and the banks will provide that product shortly after the “Clear Act” passes.”
His conclusion is:
“The “Clarifying Act” will pass later this year.”
Interestingly, Polymarket disagrees… the odds have fallen to just 14%, and they drop every day 👀
Let’s see how all of this plays out.
#JapanNoAdditionalOilReserveReleaseInSepOct
“The banking industry’s main lobbying effort regarding the “Clarifying Act” is to argue that by allowing stablecoin products to offer yields, it will cause a massive flight of deposits. The fact is, stablecoin yield products have been on the market for four or five years.”
“You haven’t seen a flight of deposits. Large bodies of research from universities, the Fed, and other government entities show that the fight against deposit flight is a made-up story.”
On the banking industry’s credibility on this issue:
“The banking lobbying groups have not prevented the demise of small banks in the United States. Compared to before the financial crisis, we have 2,000 fewer banks. This is largely due to costs for U.S. banks. The banking lobbying groups have also not addressed the problem in any substantive way. So they’ve turned their anger toward crypto.”
Historical parallel:
“In the early 1980s, the banking industry went through a crazy fight with money market mutual funds. Fidelity invented the product. They lost that war. Money market funds are now provided by banks. Similarly, you’ll see stablecoin products offering yields, and the banks will provide that product shortly after the “Clear Act” passes.”
His conclusion is:
“The “Clarifying Act” will pass later this year.”
Interestingly, Polymarket disagrees… the odds have fallen to just 14%, and they drop every day 👀
Let’s see how all of this plays out.
#JapanNoAdditionalOilReserveReleaseInSepOct
