Johnson: U.S. Stablecoin Bills Fit Cause Systemic Crypto Wahala
Economist Simon Johnson de warn say di new U.S. stablecoin legislation—the GENIUS Act and CLARITY Act—fit cause serious crypto wahala wey fit scatter system. Dis stablecoin law stop regulators from enforce capital and liquidity rules.
Di GENIUS Act make issuers fit get zero interest on reserves and invest for high-risk assets. Foreign issuers fit use non-dollar government debt to back dollar-pegged tokens, wey fit make asset and liability no balance well well. Di relaxed oversight and conflict wey fit happen under CLARITY Act go increase system risk and di danger say people go run during redemption spikes. Johnson talk say bankruptcy process alone no go fit stop di wahala spread. Traders suppose dey watch di stablecoin reserve allocations, redemption rates, and regulatory updates make dem fit prepare for liquidity pressure and market shakings.
Bearish
Johnson warning dey show say regulatory oversight for U.S stablecoin law don weak, e dey increase systemic risk and possibility say people go rush collect their money. For short term, traders fit face high volatility and quick stablecoin withdrawal, fit cause sell-offs for crypto markets. For long term, more scrutiny or reforms fit still disrupt trading condition. History wey relate to financial panics show markets go remain unstable until strong safeguards come back, e reinforce bearish outlook.