@yamada

Coinbase vs. The Banks Coinbase CEO Brian Armstrong has voiced his opposition to the Clarity Act. The central point of contention is whether stablecoins should be permitted to yield interest. The Coinbase Argument Coinbase’s position has its merits. Banks currently earn over 4% interest from the Federal Reserve while returning a mere 0.01% to 0.14% to their depositors. Coinbase argues that banks are lobbying Congress to prevent stablecoins from paying interest simply to protect this "middleman" profit structure—a move they claim goes against the best interests of consumers. The Banking Sector's Argument The banking industry opposes allowing stablecoins to offer yields (around 4.5%) primarily due to concerns over "financial instability." If interest-bearing stablecoins become mainstream, they could trigger a massive outflow of bank deposits. While banks could compete by raising their own deposit rates, doing so would inevitably drive up lending rates, placing a heavy burden on the small and medium-sized enterprises (SMEs) that rely on them for financing. In this regard, the banks' argument holds a certain degree of logic. Personal View In 2023, the U.S. witnessed the successive failures of several regional banks. At that time, authorities protected all deposits—even those exceeding the standard insurance cap—citing "systemic risk." If a pattern becomes normalized where banks keep all profits during good times but rely on authorities for bailouts during crises, managerial discipline is lost. It seems far healthier for the industry to be exposed to a moderate level of competition. Furthermore, it is hard to imagine that stablecoin yields currently possess enough influence to cause a significant drain on bank deposits. To slow down the potential for stablecoins to strengthen U.S. dollar hegemony, based purely on uncertain future risks, seems like it could undermine American national interests in the long run. Ultimately, this issue cannot be settled through a simple binary debate. The focus of future negotiations will be determining exactly where to draw the line: to what extent should banks be protected, and at what point should competition be embraced?

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