Todd Phillips

Legislation enabling new banklike stablecoin issuers would create direct competition for deposits, with small U.S. banks in the most danger. Where is the pushback from the industry?

A cap on deposit insurance for yield-bearing accounts will still provide necessary market discipline, but other important reforms are needed to assure the safety of the banking system.

Protecting depositors' stablecoin holdings could be the difference between providing the economy with a new boost and creating unnecessary drag.

Consolidation results in harms such as higher prices, reduced worker bargaining power and increased barriers to competition. Because of that, regulators must carefully vet these deals.

The Federal Deposit Insurance Corp. might need to borrow money from the Treasury Department to manage the orderly liquidation of a systemically important bank. But if Treasury can’t legally issue more debt, that money may not be available.