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"The Clarity Act didn't fail because of regulatory disagreements—it died because banks are terrified of a $6.6 trillion deposit exodus. Your savings account pays 0.07% while banks invest your money in Treasuries earning 3.6%, pocketing the 3.5% spread. Stablecoins were about to expose this by passing actual yields to holders, so the banking lobby killed the bill with a provision banning stablecoin interest. Coinbase CEO Brian Armstrong called it a "kill switch" and withdrew support, collapsing the entire bill.
The irony? "Authoritarian" China just started paying interest on the digital yuan, while "free market" America bans yield to protect legacy banks. Brian Moynihan warned 35% of bank deposits could flee to crypto, but the technology has already won. The only question is how much damage banks will do fighting it. This is the story of the $6.6 trillion secret."
~ Coin Bureau
This video explains that the Digital Asset Market Clarity Act of 2026 failed not because of simple regulatory disagreements but because of a massive lobbying effort by major banks to protect their profits. Traditional banks rely on a significant spread by paying customers very low interest on deposits while investing that money in higher yielding government treasuries, and they fear that interest bearing stablecoins could lead to a 6.6 trillion dollar exodus from the banking system. When a provision was added to the bill to ban digital asset providers from paying yield on stablecoins crypto leaders like Coinbase withdrew their support calling it a move for regulatory capture to stifle competition. While the United States moves to restrict these yields to save its legacy financial institutions other countries like China are already integrating interest payments into their digital currencies to gain a global competitive advantage. Ultimately the video suggests that while banks successfully killed this specific bill they cannot permanently stop the technological efficiency and superior yields offered by decentralized finance and tokenized real world assets.
It is eye-opening to see how the banking lobby prioritizes their own profit margins over financial innovation for everyday people.
0:00 Intro – The $6.6 Trillion Secret Behind the Clarity Act Collapse
1:32 What the Clarity Act Was Meant to Fix in Crypto Regulation
2:17 The Hidden Clause That Banned Stablecoin Yield
3:08 Why Banks Pay You 0% and Keep the Treasury Profits
5:20 The $6.6 Trillion Deposit Flight That Terrified U.S. Banks
8:49 Coinbase Pulls Support and the Bill Falls Apart
10:29 China’s Digital Yuan Pays Interest While the U.S. Bans Yield
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=eOXnVBx2-t4
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
