The recent passage of the GENIUS Act, the first U.S. stablecoin legislation, has sparked debate on Wall Street regarding its potential to boost dollar demand and increase short-term Treasury purchases. Major financial institutions like JPMorgan, Deutsche Bank, and Goldman Sachs express skepticism, suggesting it is premature to view this as a structural change.
Analysts highlight that stablecoin funds primarily originate from money market funds, bank deposits, cash, and offshore dollars. Under the GENIUS Act, stablecoins are prohibited from paying interest, reducing the incentive for yield-sensitive funds to move from savings accounts and money market funds.
Wall Street Divided on Impact of New U.S. Stablecoin Legislation
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