The U.S. Digital Asset Market Regulation Act (Clarity Act) has pushed for a slowdown. In addition to the difficulties of coordination within the Congress, the media commented that the banking sector ' s lobbying around the stabilization currency was one of the major obstacles to the delay of the bill.

The controversy is focused on stabilizing the currency competition.

According to the article, the bill was intended to create a clearer division of regulation for encrypted assets and to reduce the risk of re-emergence of FTX-type risks in the industry. But the focus of the controversy has gradually shifted to a stable currency. According to the author, the banking sector's dissatisfaction with the earlier adoption of Genius Act, which only prohibited the direct payment of interest to the users of the stable currency, did not completely block the space for third parties to provide incentives to the users of the stable currency, thereby extending pressure to the Clarity Act.

According to the commentary, the primary concern of the banking sector for the stabilization currency was not compliance per se, but its possible diversion of deposits. The reason given by the banking lobby was that if deposits went to stable currency, the ability of banks to extend credit might be affected, which could affect small businesses and agricultural financing.

The author questions the banking argument.

The article argues, however, that this statement lacks sufficient support. The authors note that the current profitability of large banks in the United States remains strong and that the performance of the banking stock over the past year has not been weak. The United States banking industry ' s net interest income over the past year, by reference to government data, was approximately $740 billion, indicating that its core lending remained highly profitable.

The article further states that net interest income reflects the return on the bank ' s receipt of deposits and the granting of loans. On this basis, the author argues that, against the background of a high level of profitability, the banking sector is not persuasive in describing the currency as a threat to survival.

  • According to the data quoted, the net interest income for the past year was approximately $740 billion.
  • According to the author, the banking system is only part of the credit creation in the United States.
  • According to the article, large banks did not use all deposits for entity credit

It was also mentioned that there was no widely recognized academic argument in the market that even allowing the holder of a stable currency to obtain a direct gain would systematically remove bank deposits. The article compares this controversy with the development of money market funds, stating that the banking sector had opposed similar savings instruments in the past, but that the subsequent expansion of the relevant products did not prevent further growth in bank deposits.

Regulatory discussions or reverse pressure banks

In the author ' s view, if the banking sector continues to block encryption legislation on the basis of stable currency competition, political discussions may in turn turn turn to the bank ' s own market position and fee pattern. For example, the cap on credit card billing, the excess profit tax and the restoration of more stringent bank separations could all re-engage in policy discussions.

The article also mentioned that the position of the banking sector, on the one hand, in favour of a reduction in its own regulation and, on the other, in favour of more stringent restrictions on money stabilization and financial technology companies, could weaken its persuasiveness. According to the author, the game around Clarity Act is not just a regulatory division of labour in the encryption industry, but also the extent to which the United States financial system embraces new payment and storage instruments.

Additional information:This is an opinion piece, which is based on the author ' s analysis of the bill game and the banking position and is not the result of new legislation or official disclosure.