Bob Murphy

But like prima facie, it is kind of interesting because originally when Bitcoin first came on the scene and then other crypto currencies were being created and issued, the idea that you would want to get onto the blockchain in order to...

tie your token to the US dollar or to the Euro would be crazy.

You know, you'd say, no, that's the whole point.

We want to get away from that stuff.

So it is kind of funny that one of the leading use cases right now in blockchain-based finance is to have things that are pegged to the US dollar, right?

So I just do it.

Now, I realize why in practice that happened, but I'm just saying it is interesting how, you know, things evolve and people realize new technologies have perhaps uses that the original creators wouldn't have thought of.

So for me,

what I've been focusing on in my research, and I was saying this early on in recent commentary has confirmed my suspicion, that stablecoins, if the regulators didn't get involved and just let things go, then I think naturally the market would have evolved such that stablecoin issuers would have begun paying interest

to their customers, right?

So in other words, people wire in US dollar funds, they get these tokens that maintain parity with the dollar.

And so then the issue is what do they do, especially if they're not holding 100% reserves, they just go invest it in assets, they get to pocket that.

And so how would you as a new stablecoin issuer gain market share?

You say, oh, if I'm earning whatever, 8% on our portfolio, then we'll share 4% with our customers.

And that's how we'll get.

So the idea, like if you have 100 of their stable coins, it turns into 104 next year because they each maintain parity.

And so that was clearly how the way the market was going as it evolved.

And so then the Genius Act explicitly forbid that.

And I think the reason I don't know this, but I'm pretty sure behind the scenes, it was the banks who made sure that that was a key component of that legislation because.

left to its own devices.