Stablecoin Regulation Raises Tensions with Banks

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* 00:00LET’S GET THE PERSPECTIVE OF C.E.O. OF THE BLOCK CHAIN ASSOCIATION CONTEXT. THE GENIUS ACT CREATES A REGULATORY STRUCTURE FOR THE ISSUANCE OF STABLE COINS. A FORM OF CRYPTO PEGGED TO THE DOLLAR AND SIGNED INTO LAW IN JULY. I THINK WE TALKED ABOUT IT SHORTLY THEREAFTER. WE’VE DISCUSSED THE IDEA THAT DAVID SACKS SOUTH THERE TALKING THIS IS DOLLARIZATION, THIS IS FANTASTIC. BUT WE’RE TALKING ABOUT NOW TENSION BETWEEN THE MORE MODERN INDUSTRY AND TRADITIONAL FINANCE. HOW FOR YOUR ASSOCIATION IS THAT BEING DEBATEED? > > WE’RE COMING OUT PRETTY STRONGLY AGAINST SOME OF THE PROPOSALS THAT THE TRADITIONAL BANKS HAVE IN FRONT OF CONGRESS NOW. THEY’D LIKE TO ROLL BACK A LOT OF WHAT THE GENIUS ACT DOES. THEY HAVE CLAIMED THAT THEY WANT TO CLOSE SOME LOOPHOLES THAT TRULY ARE NOT LOOPHOLES, THEY WERE AT THE TABLE WHEN WE NEGOTIATED THIS BILL. SO ANY CONCERNS THAT THEY HAVE NOW ARE KIND OF, YOU KNOW, LATE TO THE GAME CONCERN. AT THE END OF THE DAY, STABLE COINS HAD THE OPPORTUNITY TO CHANGE HOW WE MOVE MONEY ON THE GLOBE AND WEIGH WANT TO MAKE SURE -- AND WE WANT TO MAKE SURE THAT THE REGULATIONS ARE SUCH THAT WE CAN CONTINUE TO SEE THAT INNOVATION THRIVE AND GROW. CAROLINE: IF YOU CAN’T BEAT THEM, JOIN THEM IS THE SAYING. SO IS THE IDEA THAT -- I’VE HEARD OF BANK AFTER BANK CONSIDERING LAUNCHING THEIR OWN STABLE COINS. WHY FIGHT THE GENIUS ACT WHICH WOULD ALLOW THEM TO DO THAT? > > YEAH, I BELIEVE THEY WILL START TO ISSUE THEIR OWN STABLE COINS. THIS IS A COMPETITION QUESTION. RIGHT NOW A LOT OF THE EXCHANGES ARE ABLE TO OFFER REA REWARD, AROUND 4% FOR STABLE COINS. YOUR TRADITIONAL SAVINGS ACCOUNT IS OFFERING LESS THAN 1%. AND THEY DON’T WANT TO COMPETE. SO THE IDEA IS LET’S TRY TO STOP THE COMPETITION AND REALLY KIND OF CREATE A REGULATORY MOAT AROUND TRADITIONAL FINANCE AND LET THEM GET OUT AHEAD. THE STABLE COIN ISSUERS ARE ALREADY AHEAD OF THE BANKS AND I THINK THAT’S PROBABLY THE BIGGEST CONCERN THEY HAVE RIGHT NO