“I really have a hard time believing that ethereum will not just seek to get a bank license as a narrow bank if this legislation were to pass.”
So says Nathan Tankus, a leftist ‘economist’ who focused on the ‘plumbings’ of the Federal Reserve Banks actions during the unprecedented printing of this year.
The act he is referring to is one proposed by Congresswoman Rashida Tlaib (MI-13), along with Congressmen Jesús “Chuy” García (IL-04) and Chairman of Task Force on Financial Technology Rep. Stephen Lynch (MA-08), and is called the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act.
It’s a curious act due to its brazen approach in using century old laws to justify the re-instatement of total monopoly even while the banking system stands under fierce criticism and for many, has completely failed.
“It shall be unlawful for any person to issue a stablecoin other than an insured depository institution that is a member of the Federal Reserve System,” this proposed law says.
The draft law defines stablecoins in such a way that things like DAI wouldn’t be included because as part of the definition it requires the token dollar is redeemable for actual dollars.
DAI is not quite redeemable because it’s an abstract algorithmic peg, unlike Tether, but DAI is exchangeable for dollars.
The exclusion of things like dai makes this act less open to criticism, although an explicit exclusion of algorithmic stablecoins would be desirable.
The act however is open to significant criticism because of its choice of limitation. In narrowing it to members of the Federal Reserve Banks, this creates a monopoly in the most crucial matter of money and its implementation in form rather than in substance.
It is communistic, and therefore it is no wonder that another supporter of this act, Rohan Grey, is the founder of the Modern Money Network which says:
“Our symposia and learning materials promote the insigh...