The global financial system is at a turning point where large banks and native digital platforms, represented by Coinbase and Circle, are competing not only for the market but for the very infrastructure of money. This controversy centers on three critical axes: the right to generate returns, sovereignty over digital cash, and the use of the regulatory apparatus as a competitive weapon.
The Conflict over Returns and Liquidity✅️
Traditional banking perceives stablecoins, especially USDC, as an existential threat to its deposit model. By offering rewards or interest for holding digital assets, platforms like Coinbase are causing a capital flight from conventional savings accounts to the crypto ecosystem. Banks argue that this drains the necessary liquidity for credit and loan creation, leading to intensive lobbying to legally prohibit stablecoin issuers from paying any type of interest to users.
The Regulatory Battle: GENIUS Act and Clarity Act✅️
The confrontation has escalated to legislative chambers, particularly in the United States. The banking industry is pushing for regulation to require that any stablecoin issuer possess a federal banking license, falling under the supervision of the FDIC. This would force tech companies to comply with unattainable or restrictive capital standards, "domesticating" the agile nature of cryptocurrencies. Coinbase, for its part, has withdrawn its support for legislative drafts it initially promoted, after detecting amendments introduced by the banking sector that seek to stifle innovation under the pretext of "systemic stability."
The Transformation of the Economic Model✅️
While banks try to have stablecoins legally defined as "bank deposits" to maintain their control, the crypto vision defends them as programmable and free "payment rails." The entry of institutional capital has brought an internal contradiction: on one hand, it provides legitimacy and massive liquidity; on the other, it tries to replicate the system of intermediaries that Bitcoin aimed to eliminate. In this scenario, the investor's discipline to avoid emotional market manipulation becomes their main tool of resistance against traditional capital seeking to turn the crypto revolution into a mere extension of Wall Street.
What do you think about this hot and important scenario that highlights another chapter of the control of the old model vs a viable, free, and secure alternative, of course regulated but not controlled by the same conservative and obsolete capital... This is merely conducted for strictly educational purposes and does not represent any investment advice... #BTC100kNext? #Write2Earn
