Over 200 U.S. community banks warned the Senate that crypto companies are exploiting a loophole that could drain $6.6 trillion in deposits. In March, two senators negotiated a deal to ban passive yield on stablecoins while allowing transaction-based rewards, but regulators don't understand smart contracts well enough to enforce the distinction.
Over 200 community banks sent an emergency letter to the US Senate saying crypto companies are exploiting a loophole. One of the biggest banking institutes in America estimated this could be a $6.6 trillion deposit outflow. They were literally saying that $6.6 trillion would leave bank accounts and go into crypto because of how crazy this is. That's deposits leaving banks and flowing into crypto. Let me say it again. I have to say it again. People are not comprehending it. Think about what that means for the crypto ecosystem as a whole. And then on March 20th, 2 separate senators reached a deal with the White House on this exact issue. They agreed in principle that passive yield, just holding a stablecoin and getting paid for it, is banned, right? Just holding it and getting paid for it, doing nothing, is banned. That's what they basically said. They came to a mutual agreement. But activity-based rewards, meaning you actually use crypto, you transact, you move money, that's still allowed. Now, the crazy part about this Is that they don't even know how crypto operates because all these smart contracts are moving your money automatically. So for you, it's passive, but from the legal law, it's not. It's a joke. So what I'm saying is we're gonna get the yield, we're gonna— everybody's gonna get what they want. That's what I'm trying to say. It's literally passive to the user. So if you put your money into crypto and you hold it, it can be moved automatically. Are you seeing what I'm saying? People are saying even the negotiations are 99% resolved when it comes to the Clarity Act. This is all conversation about the Clarity Act because it's supposed to, you know, fix all this yield issue. All these yield issues are supposed to be solved by the Clarity Act. Thank you guys for watching. By the way, we give away our entire AI trading bot for $1. Go to the link in my bio. It recommends trades, it executes the trades on your behalf, and does the research for you. Go to the link in my bio. It's $1 only. The cross-section between AI and crypto is the most lucrative frontier on the face of the planet. Take action now.
