The recent approval of the US GENIUS Act was hailed as a significant advancement for stablecoin adoption. However, a crucial aspect of the legislation may diminish the attractiveness of digital dollars compared to money market funds (MMFs). The Act prohibits issuers from providing yield-bearing stablecoins, which restricts both retail and institutional investors from earning interest on their digital dollar assets. Temujin Louie, CEO of Wanchain, warned that this legislation might not be a complete victory for the industry, as it safeguards a key advantage of MMFs. JPMorgan strategist Teresa Ho noted that tokenized MMFs could create new opportunities, such as serving as margin collateral. Paul Brody from EY emphasized that tokenized MMFs could appeal to users by offering yield, unlike stablecoins. The banking sector's influence on the policy debate has been significant, as financial institutions lobby against interest-bearing stablecoins to protect their traditional business models. Despite this, yield-bearing digital assets do exist under securities regulation, such as the recently approved YLDS token. Read more AI-generated news on: https://app.chaingpt.org/news