Warren Davidson 🇺🇸
@WarrenDavidson
Why would anyone prefer a stablecoin to traditional bank deposits?
1) Banks have fractional reserves. Although the risk of a bank default is normally small, cases like Silicon Valley Bank exist. Stablecoins are fully reserved with audited balances of 1:1 or higher.
2) Sins enables permission-less (no intermediary) payments essentially at the speed of light.
Thus, banks, bank regulators, and traditional payment processors have lobbied aggressively to either block, stall, or undermine legal clarity for stablecoins.
Congress should do the right thing: pass legal clarity for a time-tested, state-regulated regime, and protect self-custody.
2025-02-11T16:58:36.000Z