At Any Rate US Rates: Crypto market structure bill in limbo
Feb 5, 2026
Teresa Ho, Head of U.S. short-duration strategy at J.P. Morgan, offers expert views on money markets and stablecoins. She discusses the stalled crypto market structure bill and who would oversee tokenized securities. Short takes cover stablecoin yield concerns, accounting questions about cash equivalence, and new tokenized products from big institutions.
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Market Structure Bill Could Reshape Digital Plumbing
- Congress's market structure bill aims to set rules for how tokenized securities and third parties interact in digital markets.
- Treatment of whether brokers/exchanges can pay yield on stablecoins is central and could reshape banking deposits and credit supply.
Platform-Paid Yield Could Drain Bank Deposits
- A key policy tension is whether third parties can pay yield on stablecoins while issuers cannot under the Genius Act.
- Allowing platforms to pay rewards could trigger large deposit migration from banks and reduce lending capacity.
Plan For Timing Risk Around The Bill
- Monitor legislative timing because delay past spring reduces chance of passage before midterms.
- Prepare for uncertainty by modeling outcomes where the bill is stalled or amended.