Also - to preempt any statements about USDT having a higher backing rate than most banks... US banks have something USDT doesn't - FDIC account insurance. When it comes to banks the buck doesn't stop with the bank - it stops with the US government.
AFAIK there are no FDIC insured stable coins - there's apparently USDF[1] which is being promoted by FDIC insured banks but the coins themselves aren't subject to FDIC insuring and could quite possibly either bankrupt the backing entity or be abandoned in the case of a bank run.
In that case, and with the caveat that deposit insurance is wired and uncertain at the best of times, that makes stablecoin a regulated bank.
This makes it for for the user. I don't see how a bank can comply with banking law though. How does a bank prevent criminals, sanctioned orgs, money launderers or whatnot from using it?
It's possible that regulators will leave a loophole like this in play. They aren't always sharp.
What that is, is a bank where account are a wallet. It's still a USD bank account.
