Beyond regulatory clarity, a critical hurdle for enterprise adoption of stablecoins is their accounting treatment. The Financial Accounting Standards Board (FASB) is currently deciding if stablecoins can be classified as cash equivalents on a balance sheet, a move that would significantly lower friction for corporate use.
The term 'tokenized money fund' is misleading as it covers three distinct models: fully on-chain funds like BlackRock's BUIDL, traditional 2a-7 funds with new digital share classes, and new 'stablecoin money funds' designed specifically to manage stablecoin reserves under the Genius Act's conservative guidelines.
A key provision in the crypto market structure bill, which could stall its passage, is the debate over allowing third parties to pay yield on stablecoins. Regulators fear this could trigger a mass exodus of deposits from the traditional banking system, while the crypto industry views it as essential for competition.
While stablecoins face regulatory uncertainty, major banks like J.P. Morgan and Boney are developing a competing product: tokenized deposits. These offer the same blockchain efficiencies for fund transfers but operate within the existing, trusted banking regulatory framework, presenting a more attractive, lower-risk alternative for institutional clients.