Why are banks fighting the crypto Clarity Act?
Banks lend your money out the second you deposit it. They lend it to 30 year mortgages, car loans and 100 other fractional reserve loans.
They earn the Fed fund rate on their liquidity but pay you 0.1% interest basically nothing.
So if enough people ask for their money back, well they don’t have enough to cover, because they have lent it out for profit.
The Clarity Act creates an option for people to move their money from the banks to crypto StableCoins and earn more than 0% yield. The banks are terrified of this.
If the Clarity Act passes as is, and enough people move their money to Stable Coins, this can bankrupt the banks.
Few will tell you this. Now you know.