The Clarification Act (American law intended to establish a comprehensive legal framework for the digital property market) has been passed by the House of America and has recently passed the Senate Bank Committee with a overwhelming approval rating. In order to officially become law, Clairty still has to pass many approval rounds in the Senate, the House of Representatives and needs the signature of the President of the United States.

The passage of the Clarification Act is considered a potential turning point for the market money. From there, the field will be established the first comprehensive legal framework in the United States, ending the years of "displacement".

According to Joe Vollono, the commercial director at the Stablecoln STBL infrastructure company, the legal step also deepens tension between traditional banks and the money industry, especially about stablecoin and deposits. "The banks are worried about the deposit being removed", he remarked.

  • Banker in Hanoi is counting US US dollar money. photo: Hang*

In the report released earlier in the year, Standard Chartered said the view that as stablecoin is increasingly widely used, banks are at risk of being sucked out of deposit into the digital property sector. The analysis of Geoff Kendrick, the head of the global digital property research at this bank, pointed out that the use of more and more types of money was designed to follow the value of a common asset, usually the dollar, could cause up to $500 billion deposits to leave banks in developed countries in late 2028.

He considered the important laws of digital property to be the next catalyst capable of promoting growth for the Fresno companies such as Coinbase, when they competed directly with traditional financial companies. Standard Chatered estimated deposits deposited at US banks would be reduced to a third of the capitalized scale of the stablecoin market.

According to data from DeFi Llama, the circulation stablecoin supply has increased by about 40% over a year ago, to over $300 billion. This speed is expected to rise faster after the Clarity Act is passed.

"U.S. banks also face threats when the payment network and other core banking activities turn to stablecoin", Kendrick wrote in the report.

A major disagreement between the banks and the floor of the UTC is whether consumers are allowed to receive bonuses, similar interest rates, regarding their surplus stablecoin. Coinbase currently pays 3.5% of the extra USC that customers hold.

The regulations passed last year banning the release of stablecoin directly paid interest. However, trading floors can still indirectly provide interest or reward to the holder stablecoin. The new Clarity Act will determine the range of those who can pay interest or reward on stablecoin and under what conditions.

Some bankers are concerned that this rivalry will suck deposits out of the banking system. They are afraid that that will weaken the bank's deposit advantage, thus reducing the ability to provide credit to the real economy. The lobbying groups are also acting, trying to push the U.S. government to restrict activity against their competitors.

"I don't accept that. I think it doesn't have an American spirit and harms consumers", Brian Armstrong, CEO Coinbase, said at the World Economic Forum in Richmond earlier this year.

According to Standard Chartered's calculations, the pure interest (NIM) is the most accurate measure of the risk of withdrawal deposits to banks, by deposits as the factor in the creation of NIM. "The level that is under the practical influence of every bank in the face of a decline in NIM income prompted by stablecoin will largely depend on how that bank responds to this threat," noted the report.

  • Tether's symbolal coin (USD), one of the world's most popular dollar anchors. Photo: CNBC*

However, Joe Vollono argues that the concerns of the banking world are also "regulated". According to him, instead of being afraid of being competitive or losing their share, the banks could release their own stablecoin in accordance with the Clarty Act, through which opened the door to completely new business models.

"The smart people will find a way to compete", the money specialist this figure remarked.

Similarly, according to Wenxin Du, Professor of Finance at Harvard Business School, said the threat from stablecoin to banks may be smaller than they feared. The benefits were not enough to get the households out of the bank deposits.

He claimed that making profits from the leisure money outside the bank was nothing new. The depositors who were interested in productivity were able to access the currency market funds (Donnell Market Fund - MMF) since the 1970s. In the United States, the scale of the currency markets has increased to $7,500 billion, roughly equivalent to the 7.800 billion in total payments. Despite the decades of growth of the currency market fund, deposits at the U.S. trade banks remained at approximately $1.8 billion.

To win the deposits deposited for transactions that currency markets have not yet attracted, stablecoin will have to compete more on convenience rather than interest. The currency market funds for the current low-costing organization are only about 0.07 points. Thus, Professor Wencin suggests that the stablecoin ecosystem is unlikely to cross that threshold.

If you put the cases of purely oscillo aside, the person who deposits money in the U.S. has no clear reason to keep the money with stablecoin. "This means risk stablecoin growth caused by the U.S. bank's deposit advantage is theoretical, but hard to come true in reality," the professor remarked.

However, unlike previous currency market funds, stablecoin is designed as payment tools and is capable of programming, which can be embedded to automatically carry out actions, such as the money awards when responding to specific conditions such as the item given. There is a logical scenario in which stablecoin becomes an important sub-payment class and in the future creates a greater competitive threat to the bank.

"The Clarity Act will play a role in how far that future will grow and how fast," Wencin said.

January Gu (LeonDesk), Bloofberg, *Financial Times)