👋 Hey dear friends!!
Let's break down some hot news that clearly shows what the fight between traditional finance and the crypto industry over our financial future actually looks like.
👉 Coinbase CEO Brian Armstrong issued a sharp warning. He called the potential revival of discussions around the GENIUS Act, one of the stablecoin bills,a "red line."
His main point: this isn't about security; it's a lobbying attack by banks on their competitors. 😏🔥
👉What's the Core Conflict?
Currently, the law in question prohibits stablecoin issuers (like companies issuing USDC) from paying interest to holders directly. But there's a workaround: crypto platforms (like Coinbase) or other third parties can do this through various rewards programs.
👉The banks don't like this. Why? It's simple:
Banks take public deposits, park some reserves at the Fed earning ~4%, but pay customers close to 0% on traditional savings accounts.
Crypto platforms, using stablecoins, can afford to share some of that yield with users by offering these "rewards."
📝 As noted by Max Avery of Digital Ascension Group, banks are lobbying, under the guise of "safety" and "protecting deposits", for amendments that would ban any rewards for stablecoins, even those offered through platforms. In other words, they want to completely strip the industry of this competitive advantage.
👉💥 Armstrong's Stance: This is a War for the Future of Finance
Armstrong doesn't mince words:
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He is "impressed" by the audacity of bank lobbying so openly trying to stifle competition through Congress.
He believes this is an attack not just on stablecoins, but on the entire fintech industry.
He gives an interesting prediction: in a few years, the banks themselves will lobby for the ability to pay interest on stablecoins once they understand the potential. So, their current fight is a "100% waste of effort."
👉 The Regulatory Paradox:
The irony is that while one group of lawmakers (under bank pressure) tries to restrict stablecoins, another group is proposing tax breaks for them. Recently, a group of congressmen introduced a discussion draft to exempt small, everyday stablecoin payments (up to $200) from capital gains tax. The goal is to encourage their use as real payment methods.
👉 So, a real battle of ideas is underway in Washington: some see stablecoins as a threat, others see them as a tool for innovation and financial inclusion. 🤷
➡️ Question for you❓
Who do you think will ultimately win this fight: banking lobbyists striving to maintain the status quo, or the crypto industry offering people a real alternative and yield? And are traditional institutions ready to adapt, as Armstrong predicts❓❓❓❓
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