Analyst: The GENIUS Act Is a Positive Development for Ethereum-Based DeFi

ChainCatcher reports that, according to Cointelegraph, U.S. President Trump signed the GENIUS Act on Friday, officially banning the issuance of yield-bearing stablecoins and cutting off both institutional and retail investors from earning interest through stablecoins. Previously, these types of stablecoins typically generated returns for holders through staking or lending mechanisms.

Crypto analyst Nic Puckrin pointed out that this move is “bullish for Ethereum-based DeFi,” as DeFi offers alternative sources of yield that can be used to earn passive income or hedge against fiat currency inflation.

CoinFund President Christopher Perkins also stated, “A dollar without yield is a depreciating asset, while DeFi is a place where yield can be generated and asset value can be preserved.”