Stablecoins not a threat to banks in the near-term: Moody's analyst
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- Moody's estimates the stablecoin market cap topped $300 B at year‑end, but says current US rules block yield‑bearing stablecoins from replacing deposits.
- Abhi Srivastava notes existing US payment systems are already fast, low‑cost, and trusted, limiting near‑term disruption to banks.
- CLARITY Act is stalled after Coinbase and other crypto firms opposed drafts that ban yield‑bearing stablecoins and lack open‑source developer protections.
- Senator Thom Tillis plans to release an updated CLARITY draft to appease both banks and crypto firms, though the proposal has yet to be made public.
- Coinbase leads the crypto industry’s pushback against the CLARITY Act, arguing the bill’s restrictions hinder innovation.
Why it matters: Banks keep deposits now, but a $300 B stablecoin market erodes their share, while regulators confront a stalled CLARITY Act that creates fragmented oversight and delays clear rules for crypto‑bank integration.
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