a16z Executive Says No Evidence Stablecoin Rewards Drive Bank Deposit Outflows
Summary
- Miles Jennings said there is no concrete evidence that stablecoin rewards cause deposit outflows from banks.
- He pushed back on banking industry concerns, saying some banks do not want the Clarity Act itself to pass.
- He said regulation centered on SEC administrative action lacks long-term regulatory certainty and could accelerate the departure of crypto entrepreneurs and founders from the U.S.
Forecast Trend Report by Period
Miles Jennings, a16z Crypto’s head of policy and general counsel, pushed back on banking industry concerns over the Clarity Act, saying there is no specific evidence that stablecoin rewards lead to deposit outflows from banks.
In an interview with Crypto in America on Sept. 11, Jennings said banks claim stablecoin rewards would trigger deposit flight, but he has not seen concrete evidence to support that argument. He added that some banks do not want the Clarity Act itself to pass.
He also said administrative action by the U.S. Securities and Exchange Commission alone would struggle to provide long-term regulatory certainty for crypto entrepreneurs, regardless of which administration is in power.
Jennings said that if regulation continues to rely on enforcement rather than legislation, as it did under former SEC Chair Gary Gensler, the exodus of crypto companies and founders from the U.S. could intensify.
JH Kim
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