In the lead-up to the potential passage of the crypto market structure bill, known as the CLARITY Act, Faryar Shirzad, Chief Policy Officer at Coinbase, shed light on the ongoing discussions surrounding key provisions of the already enacted GENIUS Act.
GENIUS Act Under FireShirzad emphasized the importance of protecting the GENIUS Act, arguing that rewards benefit consumers without adversely affecting community banks.
This results in over $360 billion yearly from payments and deposits, in addition to substantial unused lending capacity, as the Federal Reserve incentivizes banks to maintain reserves rather than deploy them.
Shirzad further expressed alarm at how, during these Senate discussions, China has recognized the opportunity presented by the bank lobby.
The country has recently announced interest payments to users of its Digital Yuan, aiming to undermine the supremacy of the US dollar. He warned that banning rewards in the Senate would inadvertently aid China’s efforts to challenge the dollar’s dominance.
Concluding his remarks, Shirzad asserted that the opposition from banks toward stablecoin rewards is not based on prudential concerns but stems from a desire to protect lucrative revenue streams threatened by competition.
Deaton Critiques ABA’s Threat To Stablecoin RewardsDeaton argued that banning American firms from providing yield to everyday citizens does not protect banks, as claimed by the ABA; rather, it risks forcing global reliance on China’s currency over the US dollar.
The criticism also extended to banking officials, with Deaton asserting that the Banking Policy Institute, led by figures like Jamie Dimon, has crafted an anti-crypto bill last year that undermines the interests of average Americans.
He contended that if the Senate capitulates to the bank lobby, it effectively imposes a hidden tax on retail investors and customers nationwide to safeguard Wall Street’s profits.
Featured image from DALL-E, chart from TradingView.com
