A new act called the GENIUS Act is poised to significantly alter the landscape of retail banking. Tushar Jain, managing partner at Multicoin Capital, predicts that this legislation will usher in a wave of competitive changes, potentially ending traditional banks’ practice of providing minimal interest on deposits. According to Jain, tech giants like Meta, Google, and Apple, leveraging their extensive distribution networks, are likely to launch stablecoin products with significantly higher returns than those offered by current banks. These products could feature instant settlement, 24/7 payments, and free transfers, directly challenging the retail deposit market dominated by traditional banks. Despite efforts from the banking industry to restrict stablecoin platforms from offering competitive yields, Jain argues that regulations prohibiting interest payments to stablecoin holders can be easily bypassed. He emphasizes the need for greater returns on deposits, as the current average rate in US savings accounts stands at a paltry 0.40%, with trillions of dollars locked away earning no interest. This underlines the urgency for new competition within the banking sector.