I say they aren’t stable because for all of that to work, the issuers of the stablecoin have to have a robust, audited reserve of dollars to pay out when a claim comes in and the GOP blocked all our amendments to require audits and hold reserves in insured accounts. BUT…
Having sent a crappy bill to the Senate the Senate - per tradition - made our bill worse by adding a provision that says that in the event of a run on a bank holding stablecoin deposits, those deposits have a senior claim, above those of law abiding citizens in insured accounts.
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