The author relays a third-party X thread claiming Section 404 of the CLARITY Act would ban all stablecoin yield and that banks lobbied for it, asking others to weigh in.
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Saw this thread/article going around on X about the CLARITY Act and why Coinbase actually pulled support.
https://x.com/donjorgiomd/status/2012927733794238775?s=46
The main claims:
∙ Section 404 would ban ALL stablecoin yield, not just from issuers but from exchanges and affiliates too
∙ 53 banking associations coordinated lobbying for this
∙ Bank of America CEO warned $6T in deposits could leave banks if stablecoins paid competitive rates
∙ China launched interest-bearing digital yuan the same week
The ending goes into some speculation about counter-positioning but the regulatory research seems solid.
Anyone with more knowledge on this want to weigh in?