Recently, the passage of the American GENIUS Act has sparked heated discussions in the fintech sector. This act is considered a milestone in stablecoin regulation, but the provision prohibiting the issuance of yield-bearing stablecoins has raised concerns among industry insiders.

Temujin Louie, the CEO of Wanchain, pointed out that this bill effectively solidifies the market position of traditional money market funds. The bill was signed into effect by Trump on July 18, and its effects are gradually becoming apparent.

It is widely believed in the industry that money market funds are a response from Wall Street to the rise of stablecoins. This competitive advantage becomes even more apparent when these funds appear in tokenized form. JPMorgan's strategy analyst Teresa Ho emphasizes that tokenized money market funds can be used as collateral in financial transactions, which enhances their practicality.

EY's blockchain expert Paul Brody analyzes from another perspective, believing that in the current situation where stablecoins cannot provide returns, tokenized money market funds and deposit accounts may welcome new development opportunities in the blockchain field.

However, the introduction of this bill also reflects the influence of traditional banking on the stablecoin market. Some argue that financial institutions are actively lobbying to halt the development of yield-bearing stablecoins primarily to protect their own commercial interests.

This series of changes has sparked industry thoughts on the future development of the digital dollar. Some experts worry that banning yield-bearing stablecoins could weaken the digital dollar's appeal in the global financial market. Meanwhile, others believe this creates opportunities for the integration between traditional finance and emerging financial technology.

Overall, the implementation of the GENIUS Act marks a new phase in the regulation of stablecoins. It provides a legal basis for the compliant use of stablecoins and creates conditions for traditional financial institutions to participate in the digital asset market. However, achieving a balance between regulation and innovation remains a challenge that policymakers and market participants need to face together.