Treasury gets an 18-month window to pull the circuit breaker if stablecoins hurt community banks
That’s the one that killed this bill effectively in December when Brian Armstrong came out and said, no bill is better than a bad bill. Here’s where we’re at with Stablecoins, pretty much a similar place. Crypto platforms cannot pay passive yield simply for holding them. It has to be something active tied to transactions, liquidity, staking, etc. But here is the big innovation that’s a head-scratcher. Treasury receives a circuit breaker if transfers into Stablecoins substantially damage deposits at community banks with less than 10 billion in assets. The proposal gives Treasury a one-time window during the first 18 months after enactment to determine whether Stablecoin rewards are causing substantial deposit losses at community banks, which are those with less than 10 billion in assets.
#Stablecoins #ClarityAct #Regulation #Banking #Crypto
Powered by WPeMatico
