Monetary Policy Lab · CLARITY Act

CLARITY Act Stablecoin Reward & Bank Deposit Simulator

Insight reported by CoinDesk: White House crypto adviser @patrickjwitt asserts bank "deposit flight" fears over the CLARITY Act's stablecoin rewards are a myth, noting bank deposits continue rising.

Simulation Levers 24-Mo Horizon

Scenario Presets
4.5%
1.2%
6.5%
$18,500B
$180B
24-Month Reserve Trajectory
Bank Deposits
Stablecoins

Reserve Telemetry LIVE MODEL

Final Bank Deposits
$20,120.4B
Final Stablecoins
$412.8B
Net Deposit Trend
Rising
Peak Flight Pressure
2.1%
DEPOSIT FLIGHT IS A MYTH: VALIDATED
Bank Deposits Expand Despite Yield Gap

Macro liquidity inflow (+6.5%) and domestic credit creation outweigh the 3.3% APY stablecoin yield arbitrage, allowing banking sector balances to expand to $20,120.4B.

Witt Hypothesis Calibration

Under the CLARITY Act, stablecoin issuers holding short-duration US Treasuries share rewards. Historical stress reveals flight fears assume static money supply rather than dynamic fiat expansion.

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