The Impact of GENIUS’ Stablecoin Yield Ban on Ethereum DeFi
The GENIUS bill, recently signed into law, prohibits yield-bearing stablecoins in the United States. This change pushes investors toward Ethereum-based decentralized finance (DeFi) platforms for passive income opportunities.
Why Ethereum DeFi Benefits from This Shift
With yield-bearing stablecoins no longer an option, Ethereum DeFi emerges as a leading alternative. Nic Puckrin, a crypto analyst, notes this could boost Ethereum DeFi adoption as investors seek inflation-resistant yields.
Institutional Capital Flows Into DeFi
Christopher Perkins of CoinFund highlights how institutions now view Ethereum DeFi as essential for yield generation. This trend may accelerate what analysts call ‘DeFi summer.’
Debate Over the GENIUS Bill
Critics like Senator Kirsten Gillibrand warn the bill threatens traditional banks. Austin Campbell, an NYU professor, calls it ‘cartel protection.’ Meanwhile, Reeve Collins of Tether predicts yield-bearing tokens will dominate.
What Comes Next for DeFi
The GENIUS bill marks a turning point. Ethereum DeFi stands to gain as both retail and institutional investors explore its yield potential in this new regulatory environment.
