The banks are at it again. Instead of competing on a level playing field with digital asset firms, they want to put their hand on the regulatory scale to ensure they maintain a moat that helps them, but not consumers.
Spewing FUD regarding deposit flight, the ability to originate loans, and the emerging stablecoin ecosystem, chatter currently indicates that the so-called “compromise” regarding the CLARITY Act will not allow stablecoin holders to generate yield only “rewards.”
The legacy banking industry has done an excellent job of using a stick and a carrot to influence elected officials. On the one hand, they have enormous financial clout and the donations to encourage policymakers to back their viewpoint. At the same time, fear, uncertainty, and doubt have been used to raise concerns about bank lending if consumers and businesses move money from deposits into stablecoins. Of course, they have no proof of this unknown outcome, and banks can, of course, compete with digital asset firms, but they would rather create a regulatory blockade to ensure profits.
Today on X there may be one digital asset firm that is well positioned to offer yeild. Figure (Nasdaq: FIGR), founded by perpetual entrepreneur Mike Cagney, has already established a path to generating returns for its holders – $YLDS.
$YLDS is a registered public debt security on Solana. $YLDS is described as being a security version of stablecoin, intended to maintain a fixed dollar price and offer a “continuous yield” that is said to be backed by U.S. Treasuries and Treasury repo agreements.
On X today, Cagney claimed that $YLDS will continue to pay interest. He also shared that they also need the “same freedom of transfer as USDC and he is lobbying for this now. Cagney shared that he is meeting with the Securities and Exchange Commission next week and is lobbying for language in the CLARITY Act to ensure it is included in the bill.
Of course, over time, other digital asset firms will seek to replicate or offer similar services. Technology will provide a path.
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