Blockchain At UCSB retweetledi
Stablecoin yield debate is probably one of the most interesting aspects of the CLARITY act.
In short, there are two camps:
1. Banks. Their whole business model is spread between deposit yields and lending rates on loans they give out.
2. Issuers/exchanges. While issuers cannot directly pay treasury yield to stablecoin holders, exchanges found a way to do it in a form of rewards. These obviously pay higher than typical bank deposits.
Banks argue that stablecoin yield can lead to outflow of capital from traditional deposits, which can disrupt credit markets.
Issuers/exchanges argue that banks just don’t want to compete.
Which side are you on?
pysel@pysellll
This week at @BlockchainUCSB, we talked about the recent moves of CLARITY Act in the Senate Banking Committee. I've been postponing my understanding of this upcoming bill, but I found it to be an extremely interesting piece of legislation. More on it below 🧵
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