TD Cowen Predicts Political Pressure Will Overcome US Banks' Stablecoin Resistance

Investment bank TD Cowen has expressed skepticism about the ability of US banks to maintain their resistance to stablecoin consumer rewards under the CLARITY Act. According to NS3.AI, TD Cowen argues that the political unsustainability of this resistance will likely lead to its failure. However, the bank warns that ongoing disputes between the banking and cryptocurrency sectors could pose a threat to the passage of market structure legislation. The Office of the Comptroller of the Currency's (OCC) efforts to block indirect stablecoin rewards are considered ineffective, as the OCC lacks discretionary legal interpretation power.