🚨 House Financial Services Committee Chair Patrick McHenry explains why the banking industry's argument for the "Clarification Act" is pure fiction:
“Banks’ main lobbying campaign against the Clarification Act is that allowing stablecoin products’ yields 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 any flight of deposits. A large body of research from universities, the Federal Reserve, and other government entities shows that the fight against a flight of deposits is just a fictional story.”
As for the banking industry’s credibility on this issue:
“Banking industry lobby groups didn’t prevent the demise of small banks in the United States. Compared to before the financial crisis, we have 2,000 fewer banks. This has a lot to do with the costs of U.S. banks. Banking industry lobby groups also haven’t addressed this problem in any substantive way. So they’ve redirected their anger toward crypto.”
Historical parallel:
“In the early 1980s, the banking industry waged a crazy fight with money market mutual funds. Fidelity invented the product. They lost that war. Money markets are now provided by banks. Similarly, you’ll see stablecoin yield products—banks will roll them out soon after the Clarification Act is passed.”
His conclusion is:
“The Clarification Act will pass later this year.”
Interestingly, Polymarket disagrees… the odds have dropped to just 14%, and they’re dropping every day 👀
Let’s see how all of this plays out.
#SamsungSKHynixLeveragedETFsPostFirstMonthlyOutflow
“Banks’ main lobbying campaign against the Clarification Act is that allowing stablecoin products’ yields 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 any flight of deposits. A large body of research from universities, the Federal Reserve, and other government entities shows that the fight against a flight of deposits is just a fictional story.”
As for the banking industry’s credibility on this issue:
“Banking industry lobby groups didn’t prevent the demise of small banks in the United States. Compared to before the financial crisis, we have 2,000 fewer banks. This has a lot to do with the costs of U.S. banks. Banking industry lobby groups also haven’t addressed this problem in any substantive way. So they’ve redirected their anger toward crypto.”
Historical parallel:
“In the early 1980s, the banking industry waged a crazy fight with money market mutual funds. Fidelity invented the product. They lost that war. Money markets are now provided by banks. Similarly, you’ll see stablecoin yield products—banks will roll them out soon after the Clarification Act is passed.”
His conclusion is:
“The Clarification Act will pass later this year.”
Interestingly, Polymarket disagrees… the odds have dropped to just 14%, and they’re dropping every day 👀
Let’s see how all of this plays out.
#SamsungSKHynixLeveragedETFsPostFirstMonthlyOutflow
