Regulators worldwide are enforcing rules to ensure stablecoins are backed by high-quality assets and prohibit interest payments on balances. This is reflected in the U.S. GENIUS Act, EU MiCA, and similar regulations in Hong Kong and Singapore. Despite these measures, crypto exchanges are offering 'rewards' akin to interest, and users can still access yield-bearing DeFi protocols like AAVE. European regulators may have stronger authority to prevent such circumventions, but stablecoins, as bearer assets, remain under user control, allowing for potential large-scale fund movements between stablecoins and yield accounts. This could lead to liquidity challenges. Meanwhile, tokenized deposits, such as those being tested by JPMorgan Chase, might gain from these regulatory constraints, reminiscent of historical banking laws like the 1933 Glass-Steagall Act.