💲Crypto can reinforce dollar supremacy through stablecoins.
🪙 Digital assets are one of the most important phenomena in the world right now.
🇺🇲 The United States can be a hub for digital asset innovation, and GENIUS + CLARITY Act move us closer to that outcome.
Crypto is not a threat to the dollar. In fact, stablecoins can reinforce dollar supremacy.
Digital assets are one of the most important phenomena in the world right now, yet they have been ignored by national governments for far too long.
This administration is committed to establishing the United States as a hub for digital asset innovation, and the GENIUS Act moves us one step closer to that goal.
Today, Chairman @SenatorTimScott led Banking Committee Republicans and Democrats in a historic bipartisan markup to advance to Clarity Act, legislation that will establish clear rules of the road for digital assets.
BREAKING: The CLARITY Act has cleared the Senate Banking Committee @BankingGOP
🇺🇸 Key: full Senate vote, House reconciliation, then the President's desk. Several senators must come to our side - @SenatorTimScott will need to get @SenWarren and others to make the move - Expect Ethics to be the hurdle!
🚨JUST IN: The White House Council of Economic Advisers has released its study on stablecoin yield and its potential impact on deposit flight and bank lending — the same report I noted last month that Senate Banking lawmakers were pressing the White House to release.
The TLDR: Banning stablecoin yield would do little to boost bank lending, impose costs on consumers, and concerns around deposit flight are overstated.
The data: At baseline, eliminating yield increases lending by just 0.02% (~$2.1B) and results in a net welfare loss.
On deposit flight: The report finds those concerns are “quantitatively small,” noting most stablecoin reserves remain within the banking system, with only a limited share truly removed from lending activity.
“In short, a yield prohibition would do very little to protect bank lending, while forgoing the consumer benefits of competitive returns on stablecoin holdings,” the executive summary reads.
Link to the report below ⬇️
Our interpretation on crypto assets—grounded in existing law and informed by extensive public input—acknowledges what the former administration refused to recognize...
Most crypto assets are not themselves securities.
After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the SEC treats crypto assets under federal securities laws.
This is what regulatory agencies are supposed to do: draw clear lines in clear terms.
TODAY 🚨: The Commission issued an interpretation that clarifies the application of federal securities laws to crypto assets.
This is a major step to provide greater clarity regarding the Commission’s treatment of crypto assets.
Read the release here: https://t.co/DDykVLHZQI
The era of turf wars, duplicative registrations, & differing regulations between @SECgov & @CFTC is over.
By aligning regulatory definitions, coordinating oversight, & facilitating data sharing, @ChairmanSelig & I will ensure we deliver the clarity market participants deserve.
🚨 TODAY: Alongside the @CFTC, we entered into an updated Memorandum of Understanding to guide future coordination between our two agencies.
This MOU will support lawful innovation, uphold market integrity, and promote investor and customer protection.
Link in the comments.