The #STABLEAct is a confused attempt at regulating perceived harms that are not actually caused by the technology, but are, ironically, inherent in the existing financial system that cryptocurrencies are designed to replace
👇🏽
Stablecoins, by their nature, can only INCREASE access to financial services. Unlike the existing system, they do not require the use of a bank account
The existence of stablecoins does not prevent consumers from using any other traditional payment, savings or credit offerings
In contrast, people can and do lose access to financial services when banks freeze or close their accounts
This happens when banks make arbitrary and opaque risk decisions that are in turn based on cumbersome regulations which deputize banks to do the government’s job
According to the press release
1. Stablecoin issuers could take advantage of low income consumers
2. Stablecoins are an ‘outsourced issuance’ of US dollars
3. Stablecoins pose market, liquidity, and credit risk
But all of these concerns are
The press release compares stablecoins to ‘shadow banks’ e.g mortgage & payday lenders, that lend on a fractional reserve basis, and often take advantage of consumers
This is the opposite of stablecoins like USDC, which are fully collateralized and don't charge interest or fees