Monetary McFly 🪰

🇺🇸 UPDATE: The Bank Policy Institute urged Congress to close the GENIUS Act stablecoin interest loophole to prevent deposit flight.

JUST IN: Goldman Sachs now expects ECB rate hikes in April and June.

In 2018 I attended a strategy meeting involving representatives from several large American banking institutions. Ripple and the XRP Ledger were already on the radar. Their potential to compress settlement times and reduce the need for prefunded liquidity was understood inside banking circles long before the public began discussing it. What concerned some institutions was not the technology itself but the pace at which an external infrastructure provider could begin influencing core payment rails. I remember reading the meeting minutes afterward. One section discussed regulatory pressure and market narrative as tools that could be used if and when Ripple’s influence reached a certain threshold. In plain terms, the view was that if the technology became too disruptive too quickly, institutions would lean on regulatory channels to slow it down. That is not unusual in banking. Incumbent systems defend themselves. It is part of how large financial networks evolve. What stayed with me was the emphasis on timing. The document suggested that such pressure would only be applied once adoption, visibility, and institutional exposure reached a point where intervention would be effective. Looking at the environment today, I cannot help but notice that many of those conditions appear to be aligning again. You may not like hearing that. But from where I sit, it would not surprise me if Ripple faces another wave of regulatory and institutional assault. When a technology begins to challenge entrenched financial infrastructure, resistance is not the exception. It is the rule.

🇺🇸 UPDATE: The Bank Policy Institute urged Congress to close the GENIUS Act stablecoin interest loophole to prevent deposit flight.

They don't pay interest on bearer asset physical currency, so why would they pay interest on bearer asset digital stablecoins🤔

🚨CRYPTO AND BANKS FINALLY REACH DEAL IN NEW CLARITY ACT DRAFT The latest draft of the CLARITY Act shows both sides backing a compromise on stablecoin yield rules. The deal allows rewards tied to stablecoin activity, and bans earning yield just for holding balances. Nonetheless, how “activity-based” rewards will actually work remains unclear, leaving room for future regulatory battles.

Don't be surprised when the next round of QE simply turns into a massive period of stablecoin creation🤔 A not QE, QE

As the chess pieces continued to shuffle around the board…