Banking Sector Warns on Stablecoins as Crypto Regulation Bill Faces Delays
Banking Sector Warns on Stablecoins as Crypto Regulation Bill Faces Delays
Bank of America's CEO has cautioned that up to $6 trillion in bank deposits could migrate to stablecoins if they are permitted to offer interest. Meanwhile, a key crypto market structure bill, supported by Robinhood's CEO, faces delays in the Senate Banking Committee after Coinbase withdrew its backing.
Banking Sector's Stablecoin Concerns
Bank of America CEO Brian Moynihan issued a stark warning, indicating that allowing stablecoins to pay interest could trigger a massive shift of up to $6 trillion in deposits away from traditional banks. This highlights growing apprehension within the established financial sector regarding the potential disruptive power of digital assets, particularly stablecoins, on conventional banking models.
Crypto Market Structure Bill Encounters Roadblocks
Efforts to solidify crypto regulation are encountering hurdles, as a significant crypto market structure bill, championed by Robinhood CEO Vlad Tenev, has been postponed. The Senate Banking Committee delayed a markup hearing for the legislation following Coinbase's decision to retract its support. This deferral underscores ongoing complexities and disagreements among stakeholders in shaping the future regulatory landscape for the cryptocurrency industry.