GENIUS' ban on stablecoin yield will drive demand for Ethereum DeFi — Analysts
The lack of yield-bearing options for US-regulated stablecoins under the GENIUS bill will drive investors to search for interest elsewhere, analysts said.
The US fresh stablecoin legislation could create more demand for Ether (ETH) and decentralized finance applications, which are primarily based on the Ethereum network, according to analysts.
The GENIUS bill, signed into law by US President Donald Trump on Friday, bans yield-bearing stablecoins, cutting off interest-earning opportunities for institutions and retail traders. This type of stablecoin generates interest or returns for the holder through yield-generating mechanisms, like staking or lending.
According to crypto analyst Nic Puckrin, the removal of yield on stablecoins “is great news for Ethereum-based DeFi as the main alternative for passive income generation.”
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