- Crypto advocates have sent out over 90,000 emails to their Senators, opposing the move by Democrats to remove existing stablecoin rewards from the incoming Market Structure Bill.
- The advocates, under the auspices of a non-profit pressure group, Stand With Crypto, demand an end to Wall Street’s push for a monopoly in the financial interests landscape.
- Coinbase CEO Brian Armstrong urges big banks to develop better products rather than insist on stifling healthy competition from stablecoins.
Within 24 hours, US crypto enthusiasts have sent out over 90,000 emails to their respective Senators to dissuade them from removing stablecoin reward provisions from the Digital Asset Market Structure Legislation. Stand With Crypto, a crypto advocacy organization, initiated this move to reach lawmakers in a bid to end Wall Street’s push to crush stablecoin rewards.
Crypto Advocates Insist: Stablecoin Rewards Are Here To Stay
U.S. crypto enthusiasts have made a strong, collective statement against any plans in Congress to shut down stablecoin yields and rewards in the developing Market Structure legislation. Stand With Crypto initiated a campaign on Monday to enable the grassroots to email their representatives in Congress.
“Crypto represents a new era of finance, powered by people and open to everyone,” said Stand With Crypto. “Big Banks want to stop us from disrupting their monopoly. They’re lobbying to ban our right to earn crypto rewards on Stablecoins. Don’t let them.”
Coinbase CEO Brian Armstrong recognized that USDC rewards are already law under the GENIUS Act, while calling out the “hypocrisy” in banks trying to undo something that is already codified in a bid to maintain their “monopoly.”
“Hypocrisy from banks is causing problems for crypto again. Banks want to remove your ability to earn rewards when holding stablecoins,” said Armstrong.”
The Coinbase Chief pointed out that the competition in the market is “good for consumers.” According to him, big banks should focus on improving their product delivery instead of looking for another bailout.
Wall Street Chooses Monopoly Over Healthy Competition
While crypto advocates fight for the freedom and ease provided by stablecoin innovation and inclusion in mainstream financing, America’s leading banks fear that allowing stablecoin yields could put them out of business.
In August, the BPI (Bank Policy Institute), a nonpartisan public policy organization representing the interests of America’s biggest banks, called on Congress to block stablecoin yield restrictions in the Market Structure Bill, which is still being processed in the Senate.
The banking group emphasized that stablecoins should not substitute for bank deposits and other traditional financial instruments, considering the stark differences in their regulatory premises.
Furthermore, the BPI affirmed Treasury’s findings that “stablecoins could lead to as much as $6.6 trillion in deposit outflows” if permitted to offer yield and interest. Banks project that such an intense diversion of deposits could limit their ability to fund credit, thus increasing the cost of acquiring loans for the average American.
Based on the massive support for stablecoins and grassroots advocacy against banking monopoly, Congress is expected to approach Market Structure legislation without any restrictions on stablecoin rewards. That way, they would potentially increase competition and foster innovation in the US financial ecosystem.
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