Crypto Exchange Coinbase pushes back against the attempt of American bank groups to have the recently established genius Stablecoin Act changed.
Summary
- Coinbase rejected the American bank’s warnings for ‘depositorosia’, with reference to $ 3.3 trillion to bank reserves and $ 176 billion in annual FED interest rates as proof of the power of the banking system.
- The stock market argued that the Stablecoin Supply is expected to reach only around $ 2 trillion by 2028, far below $ 6 trillion depositary flow that some banks predict, and said that banks fear to lose $ 187 billion in payment processing.
- American banking groups want the congress to close a “rewards of Maas in the genius act that according to them can offer crypto-platforms efficiency and can remove deposits.
Coinbase has doubtful Claims from American banks that stablecoins deposit deposits from the traditional banking system. The company said that the persistent story of the “deposit erosion” has no evidence, which claims that data about chains and bank statistics do not show meaningful shift of funds from banks.
The argument came as a direct response to an August movement by American banking associations that searched for changes in the Genius Act shortly after it became law. The banks insisted on the legislation of legislation to revise legislation that, according to them, create competitive disadvantages and potential meshes for crypto platforms.
Coinbase pointed to data that shows that American banks have around $ 3.3 trillion in reserves at the Federal Reserve and earned around $ 176 billion in interest last year. The exchange argued that such figures from widespread deposit flight claims and it appears that banks are not confronted with the liquidity crunch that they suggest.
The exchange also challenged the projections of a $ 6 trillion in bank deposits of the growth of the Stablecoin, and noted that the total Stabilecoin delivery is expected to reach only about $ 2 trillion by 2028.
Coinbase added that most stablecoin use supports payments and transfers instead of removing money from savings accounts, and suggested that banks are more concerned about losing an estimated $ 187 billion in annual payment processing costs than about protecting financial stability.
Why American bank groups reduce against the genius law
Banking institutions in the United States urge the congress to tighten the brilliant Stablecoin Act, with the argument that an important “reward in the” Crypto platforms law gives an unfair advantage. The law Forbid Stablecoin emissioners to pay interest or yield, but banks claim that it does not clearly stop exchanges and other intermediaries to offer reward programs that are linked to Stablecoin Holdings.
The groups warn that this gap of crypto platforms could enable customers to attract customers with yield-like stimuli, to distract deposits from traditional banks and ultimately disturb the credit markets.
Associations, including the American Bankers Association, Bank Policy Institute and Consumer Bankers Association, have asked legislators to amend the law to close the Maas in the law. Their proposals try to extend the prohibition on paying “interest, proceeds or rewards” to an entity that offers stabile-related services, not just the emennial themselves.
Bank lobbyists claim that without these changes, Stablecoin platforms will continue to seduce deposits of traditional institutions while they are working outside the capital and liquidity requirements that banks must meet, so that they call what they call an uneven -competitive landscape.
Coinbase’s position reflects those from other industrial groups, which claim that the so -called Maas in law is not a mistake, but a necessary function to support competition and innovation. They claim that limiting exchanges of offering rewards would protect unfair banks and at the same time limit the consumer’s choice on the Stablecoin market.
