The recent passage of the US Genius Act was widely observed as a major step for stabechoin adoption, but an important provision could curb a digital dollar appeal compared to the Money Market Fund, questioning whether the authors were motivated to restrained the authors’s bills by the banking industry press.
The Genius Act prevents export-manufacturing continuers from offering yield-making stabecoin, effectively prevents both retail and institutions from earning interest on their digital dollar holdings.
Because of this, CEO Temujin Louis of Crosschain Interoperability Protocol Wanchen warned against watching the law as an unqualified victory for the industry.
“In a vacuum, this could be true,” Louis told the coinalample. “But clearly preventing StableCoin issues from offering yield, the Genius Act actually protected a major benefit of money market funds.”
As cointelegraph reported, money market funds, or MMFS, are emerging as a response to Street’s street, especially when tokens are released. JP Morgan’s strategist Teresa Ho said tokens MMFS may unlock new use cases, such as serving as margin collateral.
Louis agrees, climbing that “the tokenning money is able to adopt speed and sacrificed security and regulatory oversight, flexible stablecéds have been made unique.”
Global blockchain leader Paul Body in EY told Cointelegraph that tokens and tokens to MMFS could get an important new opportunity to “yield on stabelcoin holdings”. ,
Body said, “Money markets can operate and look like stabecoin for end-users, but with the difference that they offer the yield.”
Kas for EY’s Body, yield is a decisive factor between bee availability tokens between MMFS and StableCoins. Nevertheless, he does not maintain the benefits of stablecoins certificates:
“Stablecoins are allowed as bear assets, which means that they can easily be placed without complex management of action and transfer contrasts in Defi services and other onchain financial services. The token money market funds have many restrictions that prevent such use, it is possible.
Connected: Crypto executed the center stage as Trump has signed the StableCoin bill in the law
Banking industry’s hold on stabechoin debate
The talented act of prohibition on Yield-Building Stabecrims was slightly surprised, in which CoinTelegraph earlier stated that the banking lobby has violated significant violations on the policy debate around Stabecrims.
Back in May, Nyu’s professor and blockchane advisor Austin Campbell cited sources within the defense of their long -lasting business models.
After offering minimum interest to depositors over decades, banks would have threatened to feed their competition if stabechoin issues were allowed to introduce holders, camps.
Nevertheless, digital property exists in the US before the yield, although under the clear scope of securities regulation. In February, the Securities and Exchange Commissions approved the country’s first produce-bear stabechoin security, which was released by Figure Markets. The token, called YLDS, offered 3.85% yield in launch.
Connected: Genius determines new stablecoin rules but remains unclear on foreign issuers
