Here's the regulatory paradox nobody wants to admit: yield-bearing stablecoins are essentially tokenized money market funds in structure. Yet the industry pushes back hard against that classification. Why? Because MMF regulation comes with compliance baggage—insurance requirements, capital restrictions, the whole nine yards.

The real tension: these assets need to compete with traditional bank deposits to gain traction, right? But compete they must do without triggering banking regulations. Insurance coverage? Nope. Capital adequacy rules? Not interested. It's wanting the market appeal of deposits with zero regulatory friction.

So what's the actual endgame here? You can't honestly have it both ways. Either these instruments function like traditional financial products and accept the oversight that comes with it, or they carve out their own lane entirely. The current stance—trying to occupy that gray zone—just kicks the can down the road until regulators force a reckoning.