The last traffic of the US Genus Law has been widely celebrated as a major step forward to adopt Stablecoin, but there may be a major judgment that may limit the attractiveness of digital dollars compared to the money market funds, raising questions about whether the draft law author has been affected by pressure on the banking industry to restrict Stablecoins.
The Genius Law explicitly prevents exporters from providing a stand -off Stablecoins, which effectively prevents both investors from retail and institutions from gaining interest on digital dollar holdings.
For this reason, Temujin Louie, CEO of the Crosschain Protocol for Wanchain Overflow, warned against seeing the legislation as an unqualified victory for this industry.
“In a vacuum, this may be true,” Louis told Cointelegraph. “But by explicitly banning Stablecoin’s exporters from providing the return, the genius law actually protects a great advantage in the money market funds.”
As said CointeleGRAPH, money market boxes, or MMFS appear, as an answer to Wall Street on Stablecoins, especially when released in a symbolic form. JPMorgan TERESA HO strategy expert has noticed that the distinctive MMFS can open new cases of use, such as working as a margin guarantee.
Louis agrees that “the distinctive symbol enables the money market funds to adopt the speed and flexibility that made Stablecoins unique in the past, without sacrificing safety and organizational supervision.”
Paul Brody, the world’s global leader, told Cointelegraph that the distinctive MFS and distinctive deposits “can find an important new opportunity, especially in the absence of the return on Stablecoin’s holdings.
“The money market boxes can work and look like Stablecoins for the final users, but with the difference they provide the return,” said Brody.
According to EY’s BRODY, the availability of the return can be a decisive factor between the distinctive MFS and Stablecoins. However, he pointed out that Stablecoins maintains certain advantages:
“Stablecoins is allowed as pregnant assets, which means that it can be easily placed in DEFI services and other onchain financial services without complex management of access and transfer controls. If the distinctive money market boxes have many restrictions that prevent this use, it is possible that the attraction of the return is not enough to continue the additional operational complications.”
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The fist of the banking industry on Stablecoin discussion
The prohibition of the genius law on the bearing stablecoins was not a little surprise, as Cointelegraph previously reported that the bank lobby seemed to have had a major impact on the continuous political debate about Stablecoins.
In May, Professor NYU and Blockchain Austin Campbell were martyred with sources within the banking industry, and revealed that financial institutions are actively pressing to prevent the protective Stablecoins to protect the protection on their long -term business model.
Campbell said that after decades of providing minimal interest, banks feared that their competitiveness would be threatened if Stablecoin exporters are allowed to provide the return directly to their holders.
However, there are digital assets that bear the return in the United States, albeit under the securities regulator. In February, the Securities and Stock Exchange Committee approved the country’s first safety in the country, which was issued by the form of form. Provide the distinctive symbol, called Ylds, returning by 3.85 % at launch.
Related to: The genius defines new stablecoin rules
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