Episode Details

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.