🔥THE BANKS ARE THE ENEMY OF THE PEOPLE🔥
The banks are holding the CLARITY Act hostage because Americans might, and I need you to sit down for this...
...earn more than 0.03% on their cash.
Let me walk you through the business model that has these people in absolute meltdown mode:
Step 1: You deposit $10,000 at your bank.
Step 2: They pay you $3 per year in interest. (Three. Dollars.)
Step 3: They lend your $10,000 to someone else at 8.9% and collect $890.
Step 4: They keep $887 of that spread as "the cost of financial intermediation."
Step 5: When stablecoins show up offering 4-5% yields, the banks sprint to Washington screaming about "FINANCIAL STABILITY" and "CONSUMER PROTECTION."
Because apparently the real threat to consumers is...
...earning market rates on their own fucking money.
The entire lobbying campaign is built on one exquisite lie: that paying savers anything close to actual yield will somehow collapse the banking system.
Which is technically true! Just not in the way they mean it.
What they mean is: "Our profit margins require your financial ignorance."
The banks have spent 15 years paying grandma 0.03% on her savings while inflation ran 20-40%.
They've extracted every basis point of spread they could skim.
And now that crypto rails are offering actual yield, they've decided that competition itself is the crisis.
The "financial stability" argument is particularly deranged.
What they're saying is: "If people can move money to better products, they will, and our funding model - which depends on inertia, ignorance, and switching costs - will break."
YES. THAT'S CALLED A MARKET. THAT'S THE THING YOU CLAIM TO BELIEVE IN.
They're not even pretending anymore. The lobbying isn't subtle in the slighest. It's not dressed up in technocratic language about "systemic risk channels" or "liquidity transformation mismatches."
It's just: "Please ban the thing that competes with us."
And it's working! The bill is stalled. The Senate is negotiating.
Because when you have enough lawyers and enough time, you can turn an innovation that threatens your profit margins into a "stability concern" that requires regulatory capture.
The funniest part? They'll win this round, extract their concessions, water down the yield provisions, and then spend the next decade complaining about "overregulation" and "government interference in markets."
While literally having written the regulations themselves.
To block markets. From functioning.
So here we are, the same institutions that needed $700 billion in bailouts, that caused the 2008 crisis, that got caught in Libor rigging, that were fined for money laundering and fraud and rate manipulation, these paragons of stability and consumer protection, are now explaining to Congress why Americans earning 5% on stablecoins is the real systemic threat.
And Congress is listening.
Because the one thing more powerful than innovation is incumbents who really, really like their rent.
JPMorgan CEO Jamie Dimon said in a CNBC interview that crypto exchanges offering yields is unfair!
Banks want competition... but only on a "level playing field."
Cool. Then let's make it fair: Abolish fractional reserves & back deposits 1:1, like stablecoins must under the GENIUS Act.
Your move, banks.