Multicoin Capital’s co-founder says a new law could redraw how Americans keep and earn on their cash, and banks may feel the heat. Tushar Jain said the GENIUS Act could mark “the beginning of the end” of low interest for everyday savers, offering an opening for stablecoins and tech firms to compete for deposits.
What The GENIUS Act Does
According to the bill text and industry briefings, the Guiding And Establishing National Innovation For US Stablecoins Act sets strict rules for stablecoin issuers. Issuers must back their tokens one-for-one with safe assets such as cash and short-term US Treasuries, and they will face regular reserve checks and disclosure demands.
Reports have disclosed the law bars issuers from directly paying interest to holders. The measure was signed into law on July 18, 2025, and agencies have signaled an implementation target of January 18, 2027, though final rules will take additional time to write.
Why Stablecoins Could Pull Deposits
The math is simple and it matters to many people. Based on reports, average US savings accounts yield about 0.40%. Some stablecoin platforms and related services currently offer around 3–4% in returns.
The Genius Bill is the beginning of the end for banks’ ability to rip off their retail depositors with minimal interest. Post Genius Bill I expect the big tech giants with mega distribution (Meta, Google, Apple, etc) to start competing with banks for retail deposits.
The tech… https://t.co/SCtHrgNeLI
— Tushar Jain (@TusharJain_) October 4, 2025
That gap is big, and it helps explain why some analysts warn banks could see major outflows. According to US Treasury estimates cited in policy papers, a scenario of large stablecoin adoption could cause about $6.6 trillion to move out of banks.
Big Tech names—Meta, Google, Apple—were mentioned by market watchers as potential players that could bundle wallets, payment apps, and stablecoins to attract users away from traditional deposit accounts.
How The Loophole Could Work
The GENIUS Act stops issuers from handing out interest, but it does not explicitly ban third-party platforms or affiliates from offering yields on stablecoin balances.
That distinction is already drawing attention. Some industry lawyers say exchanges or partner firms might route rewards or interest through separate entities, rather than through the issuer itself.
Image: Shutterstock / ddRender
Regulators and banking groups are watching closely and some are pushing for rules that would tighten those gaps. If regulators move quickly, many of the theoretical routes to higher returns could be narrowed.
Fairness On The Table
Tushar Jain believes the GENIUS Act could finally bring fairness to how people earn from their money. Still, it’s too soon to know if his prediction will hold true or if the system will just shift power from banks to tech firms.
What’s clear is that banks, regulators, and new digital players are now competing for the same customers. If stablecoins push banks to raise rates, Jain’s vision of fairer finance might actually happen. But if loopholes stay open or oversight weakens, the change he hopes for could remain out of reach.
Featured image from Pexels, chart from TradingView
