The BPI, or Bank Policy Institute, writes on "Closing the Payment of Interest Loophole for Stablecoins." They explain, "​As policymakers consider digital asset market structure legislation, it is important that the requirements in the GENIUS Act, now signed into law, prohibiting the payment of interest and yield on stablecoins are not evaded or undermined.... Payment stablecoins do not substitute for bank deposits, money market funds or investment products, and payment stablecoin issuers are not regulated, supervised or examined in the same way. These distinctions are why payment stablecoins should not pay interest the way highly regulated and supervised banks do on deposits or offer yield as money market funds do." They comment, "Bank deposits are an important source of funding for banks to make loans, and money market funds are securities that make investments and subsequently offer yield. Payment stablecoins serve a different purpose, as they neither fund loans nor are regulated as securities." The BPI brief states, "The Treasury Department issued a report in April estimating that stablecoins could lead to as much as $​6.​6 trillion in deposit outflows, depending on whether stablecoins are able to offer interest or yield. With affiliates of stablecoin issuers or exchanges still being able to pay interest on stablecoins, the risk of significant deposit flight is even greater.... Banks power the economy by turning deposits into loans. Incentivizing a shift from bank deposits and money market funds to stablecoins would end up increasing lending costs and reducing loans to businesses and consumer households." The piece adds, "The GENIUS Act contained a prohibition on stablecoin issuers offering interest or yield, as well as other financial and non-​financial rewards, to holders of stablecoins. However, …