waroverfinancialsystem

The narrative that "banks hate crypto because it’s a scam" is a retail-level myth. In reality, banks view crypto as a competitor for deposits and a threat to their monopoly on yield.
As of February 2026, we are seeing a three-pronged "squeeze" that confirms the hunch:
1. The War on Stablecoin Yields (The Lobbying Offensive)
In early 2026, a massive lobbying campaign led by traditional banking associations (like the American Bankers Association) hit the White House.
The Raw Data: Banks are pushing for legislation that would explicitly prohibit stablecoin issuers from paying yield to their holders.The Banking Logic: If a user can get 5% yield on a "safe" stablecoin while a bank savings account offers 0.5%, the bank loses its deposits (liquidity).The "Destroy" Factor: By lobbying to ban yield-bearing stablecoins, banks aren't trying to stop the technology—they are trying to make it economically uncompetitive so you are forced to keep your money in their vaults.
2. "Weaponized" Custody Regulations
For years, the SEC and banking regulators made it nearly impossible for banks to hold crypto (via rules like SAB 121).
The Pivot: Now that those rules are being rescinded in 2026, banks aren't just "entering" the market; they are absorbing it.The Strategy: By setting extremely high "capital reserve" requirements for crypto-native firms while giving traditional banks a "fast track" for digital asset custody, they are effectively pricing out the original crypto companies.The Result: They aren't destroying the assets (Bitcoin/Ethereum); they are destroying the decentralized companies that built the industry, replacing them with "Wall Street-approved" intermediaries.
3. CBDCs: The "Programmable" Trojan Horse
As we discussed with China’s e-CNY, Central Bank Digital Currencies are the ultimate weapon against decentralized crypto.
Control vs. Freedom: Central banks are terrified of "monetary leakage"—where money moves into private stablecoins they cannot track or tax.The Mechanism: By launching interest-bearing CBDCs, central banks offer a government-backed digital alternative that "looks" like crypto but functions like a surveillance tool.The Kill Switch: In jurisdictions like the EU and China, the rollout of a CBDC is often followed by a "narrowing" of the legal pathways for private, decentralized alternatives (e.g., the recent ban on unauthorized Yuan stablecoins).
Fact Check: The "Banking vs. Crypto" Power Struggle

Follow the "Yield Gap." When banks lobby to prevent you from earning interest on your own digital dollars, they aren't "protecting investors"—they are protecting their Net Interest Margin (NIM). That is the smoking gun of their intent.

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