The biggest fight in American finance right now is over a single clause: whether digital dollars can pay their holders interest. Banks say yield-bearing stablecoins would drain trillions in deposits and break the lending machine. Crypto says the banks are defending a monopoly on other people’s money. The CLARITY Act is hostage to the answer, and this week the standoff escalated on every front.
Summary
- A battle over whether stablecoins should pay interest has become the biggest obstacle to advancing the CLARITY Act in the US Senate.
- Banks warn that yield bearing stablecoins could pull trillions of dollars from deposits while the crypto industry argues savers should receive the…
