Strategist: Banks blocking stablecoin rewards to stifle competition

James Throne, Chief Market Strategist (CMS) at Canadian investment advisory firm Wellington-Altus, has criticized the banking sector's efforts to block stablecoin rewards in the proposed CLARITY crypto market structure bill, calling it a defensive mechanism to protect vested interests. In a post on X, Throne argued that while JPMorgan CEO Jamie Dimon has spoken of fair competition, a similar debate occurred in the 1970s over whether money market funds (MMFs) should offer rewards. At that time, he noted, politicians chose to support industry innovation and competition over protecting banks, which led to higher returns for ordinary investors and forced the banking sector to change. Throne emphasized that the banks' attempt to block stablecoin rewards is a hidden effort to eliminate innovative rivals, adding that stablecoins are already accepting institutional regulation. He concluded that the banking sector is wary of the spread of stablecoins because it threatens a profit structure built on what he described as a "quiet cartel."