The White House Council of Economic Advisers and the American Bankers Association are clashing over stablecoins, with the White House claiming they could drain $6.6 trillion in bank deposits. The dispute centers on who controls stablecoin deposits, not consumer safety. Coinbase is pushing for a national trust charter while JP Morgan develops its own JPM coin.
There is a private war being fought by the White House and the American Banking Association over $6.6 trillion worth of deposits, and the White House just put out a 21-page document exposing it all. So on April 8th, the White House Council of Economic Advisers dropped a 21-page paper modeling what happens if stablecoin yield is banned. Stablecoin yield is basically the interest you earn for holding a stablecoin offered by companies like Coinbase. That's what the banks are trying to completely stop, obviously because they want to control crypto. Their conclusion was that bank lending goes up by $2.1 billion. That's 0.02%. Basically nothing. It's smoke and mirrors. The banks basically told Congress yield-paying stablecoins would drain $6.6 trillion from the system. The White House just said the real number is like 2/10 of 1%. Then on April 13th, the ABA fired back saying that the White House economists are studying the wrong question. The ABA is a 150-year-old banking lobby. It's basically a group that gets paid to push Congress to write rules in their favor. They're disrupting the framing rather than the math. They're saying that they're framing it the wrong way in their own favor. Then on April 14th, Coinbase's chief legal officer said the most respected economists in the government found nothing that shows rewards cause what we call deposit flight, meaning the money is moving from deposits. This is what I meant by $6.6 trillion. Facts are hard sometimes. This is what he said, quote. The same day, JP Morgan CFO Jeremy Barnum called stablecoins regulatory arbitrage, which is a fancy way of saying basically it's loophole while JP Morgan runs its own stablecoin, JPMD, on Coinbase's blockchain base. Okay, so he's calling it regulatory arbitrage, but he literally has his own version of it. I want you to listen to what I'm saying, okay? The banks are publicly pressuring Congress to ban yield, but their own CFOs are privately building their own stablecoins. The White House numbers do not match the warning, and Coinbase is about to get a national trust banking charter from the OCC, the federal agency that regulates national banks themselves. Coinbase gets the same federal banking status as big banks. This is not a consumer protection fight, okay? It's a fight to see who controls the next $6.6 trillion in deposits on stablecoin, and it's all on public record for everyone to look at. They're not putting it together though. People are worried about short-term price action of cryptocurrency. Meanwhile, the richest possible people in America are all fighting for control over stablecoins and cryptocurrency right in front of your face. Do the research.
