📰 The Stablecoin Yield Prohibition and the Rise of Tokenized Treasury Funds: Regulatory Arbitrage by Legal Form
🗓️ Jul 22 2026 03:03 UTC - David Krause
➤ New regulations like MiCA and the GENIUS Act prohibit stablecoins from paying interest, aiming to protect banks and monetary policy, but this has driven demand for yield to other products like tokenized Treasury funds.
➤ Tokenized Treasury funds, legally structured as SEC-registered money market vehicles, now exceed $15 billion AUM and offer yields similar to T-bills, highlighting regulatory arbitrage based on legal form rather than economic function.
➤ The article argues for a shift towards functional regulation in digital asset markets to address systemic risks, as current legal-form-based rules create fragmentation and arbitrage opportunities, as flagged by the Financial Stability Board.
#tokenizedtreasuryfunds #stablecoinyieldprohibition #mica #geniusact #regulatoryarbitrage #digitaldollars #moneymarketvehicle #economicfunction #legalform #financialstabilityboard
🔗 Read more at: https://rwatimes.io/articles/blogs.law.ox-the-stablecoin-yield-prohibition-and-the-rise-of-tokenized-treasury-funds-regulatory-arbitrage-by-legal-form-3197056009
/ RWATimes
npub1r6…jxrkh
2026-07-22 15:10:30 CEST
Author Public Key
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2026-07-22 15:10:30 CESTEvent JSON
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"content": "📰 The Stablecoin Yield Prohibition and the Rise of Tokenized Treasury Funds: Regulatory Arbitrage by Legal Form\n🗓️ Jul 22 2026 03:03 UTC - David Krause\n\n➤ New regulations like MiCA and the GENIUS Act prohibit stablecoins from paying interest, aiming to protect banks and monetary policy, but this has driven demand for yield to other products like tokenized Treasury funds.\n➤ Tokenized Treasury funds, legally structured as SEC-registered money market vehicles, now exceed $15 billion AUM and offer yields similar to T-bills, highlighting regulatory arbitrage based on legal form rather than economic function.\n➤ The article argues for a shift towards functional regulation in digital asset markets to address systemic risks, as current legal-form-based rules create fragmentation and arbitrage opportunities, as flagged by the Financial Stability Board.\n\n#tokenizedtreasuryfunds #stablecoinyieldprohibition #mica #geniusact #regulatoryarbitrage #digitaldollars #moneymarketvehicle #economicfunction #legalform #financialstabilityboard\n\n🔗 Read more at: https://rwatimes.io/articles/blogs.law.ox-the-stablecoin-yield-prohibition-and-the-rise-of-tokenized-treasury-funds-regulatory-arbitrage-by-legal-form-3197056009",
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