🚨 Banks WORRIED about a #STABLECOIN LOOPHOLE!!!

The US banking lobby is sounding the alarm! They are urging Congress to close a "loophole" in the new stablecoin laws that may allow crypto firms to offer yields on #stablecoins. The banks are worried that this could lead to a massive outflow of deposits, with some estimates suggesting a potential $6.6 trillion shift from traditional banks to stablecoins.

The banks argue that allowing interest on stablecoins could disrupt the flow of credit and harm American businesses and families. They are concerned because the banking system relies on deposits to fund the loans that power the economy.

The banks are worried that yield bearing stablecoins could undermine the credit system. The total stablecoin market cap is currently at $280.2 billion, which is just a fraction of the US money supply. But with the Treasury expecting the market to grow to $2 trillion by 2028, this is a clear sign that crypto is becoming a major player in the global financial system. #CryptoMarketNews #CryptoMarketWatc #USA