2026-01-16 22:28:09

A major US banking executive has raised an important regulatory question: if stablecoins are engineered to generate yield for holders, shouldn't they be classified and regulated like money market funds?

The comparison makes practical sense. Both offer users returns above zero while maintaining principal stability. Both are designed as accessible financial vehicles for the broader public. Yet stablecoins operating in the crypto space currently exist in a different regulatory framework.

This observation cuts to the heart of an ongoing debate in crypto policy: how should we categorize digital assets that blend characteristics of traditional finance with blockchain technology? If yield-bearing stablecoins truly function as money market substitutes, applying similar regulatory standards could strengthen investor protection and market stability—but it would also reshape how these tokens operate and what returns they can realistically offer.

The question signals growing attention from traditional finance leadership to crypto infrastructure, and hints at where regulation might be heading.

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TradFiRefugee

· 8h ago

Haha, those traditional finance folks are trying to control crypto again. This cracks me up. --- Wait, are they trying to block yield stablecoins or do they really want to protect retail investors? --- Applying the rules of money market funds to stablecoins, and their advantages are gone. This is a deliberate scheme. --- Whether regulated or not, it's all centralized stuff. I'll stick to my own plan. --- Basically, they're afraid crypto will take away their jobs. Now they're getting serious.

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NFTArchaeologist

· 8h ago

Here we go again, this set of arguments... The traditional finance folks are just thinking about how to impose shackles on crypto. --- Speaking of stablecoins, if they are truly regulated like money market funds, the yields would be cut in half. What's the point of playing then? --- Ha, money market fund? Why not just ban it directly? After all, the ultimate goal of regulation is like that. --- Interesting, yield-bearing stablecoins are now orphans caught between two worlds... Everyone wants to regulate them, but no one has a reason to completely shut them down. --- These traditional finance executives really can't stand us earning a little on-chain yield 😅 --- Wait, according to this logic, shouldn't all yield farms in DeFi also be classified? That's the real issue here. --- Instead of changing the regulatory framework, why not let stablecoins directly detach from the traditional financial system? Why bother with mutual compromises?

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GasFeeCrying

· 8h ago

Here we go again. The traditional finance folks always want to heavily regulate crypto... If stablecoins have yield, should they be regulated as funds? And what about DeFi? Should it all be treated as financial products?

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MetaverseVagabond

· 8h ago

This set of regulatory logic is one after another, but if we really regulate stablecoins like money market funds, the yield space for stablecoins will be directly cut in half. The traditional financial folks just want to incorporate crypto into their framework. Hold on... wouldn't that eliminate the advantages of crypto? Want both stability and yield—can you have your cake and eat it too? In the end, regulation will definitely be a compromise, and no one will get everything they want. Honestly, it's still a power struggle—whoever governs will have the say.

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PumpStrategist

· 8h ago

Want to cut us again? Stablecoins just need to be wrapped in a money market fund framework to collect more taxes. Bankers have a good idea there. --- Interesting, the distribution of chips is about to change. Once the regulatory boots land, yields will be cut in half, who will still dare to buy the dip? --- Don’t be fooled, traditional finance just wants to regulate and monopolize crypto. Then retail investors’ profit margins will be gone. --- Basically, if something has an annualized 5% return, it should be regulated as a Money Market Fund (MMF). What’s the point of playing P2P stablecoins then? --- The form is set, what’s coming will come. As soon as yields are cut, funds will flow out, and other ecosystem opportunities will be looked at. --- This kind of rhetoric should have been raised a long time ago, but actually implementing it? Hehe, at least three years to start. --- There’s still so much money, just in a different wrapper. Retail investors will ultimately suffer losses—that’s a given.

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