The drive for yield is insatiable. It's why the GENIUS act's prohibition on yield pass through will inevitably fail. During the lead up to the Great Depression banks engaged in a sort of "yields arm race" to attract deposits that could allow them to finance more loans. This compressed profit margins pushing them to move further out on the risk curve and take on riskier debt. Regulators blamed the crash (in part) on this race to offer higher yields. In response regulation Q was introduced which prohibited pass through on checking accounts and put a ceiling on savings. In the late 1970s, the new Fed took decisive action against rising inflation by pushing the federal funds close to 20%. Since Regulation Q capped the savings rate that could be passed through to depositors, people stuck in savings and checking accounts were unable to access the high interests, whereas financial institutions could benefit greatly. Naturally, people (who don't want their wealth to be excessively transferred away from them) looked elsewhere to find liquid vehicles they could park their savings with. So in came Money Market Funds. The initial growth of Money Market Funds was driven by the arbitrage between the capped savings rate (and lack of any rate on checking) and what people could earn in short-term, low risk debt while retaining the ability to write checks and quickly withdraw funds. By 1986, the cap on savings rates were completely removed to stop the outflow of funds from banks to MMFs and allow banks to compete with MMFs. And by 2011, the last remnant of Regulation Q - the ban on interest paid to checking accounts - was removed completely as it was deemed obsolete. What does this mean for stablecoins and yield bearing assets ? Well for one, there will be immense demand for pegged, yield bearing assets of all kinds (especially those which offer quick access to liquidity). So much so that regardless of whether the "standard path" (e.g., stablecoins regulated under the GENIUS act) allows it. Entrepreneurs have immense ingenuity and they'll find ways around the current requirements. For example, indirect pass through from platform partnerships where asset issuers pass yield onto platforms who pass it onto users in some form or another. Or just gravitating towards alternative regulatory structures, similar to the arbitrage MMFs conducted. The prohibition will also push people farther down the risk curve. Riskier onchain assets will be unnecessarily attractive since the opportunity cost of onchain capital won't be earning treasury yield, it'll be earning nothing at all.