According to Cointelegraph, new stablecoin legislation in the U.S. may increase demand for Ethereum (ETH) and decentralized finance applications. The GENIUS Act, signed by President Trump, prohibits yield-bearing stablecoins, cutting off the yield opportunities for institutional and retail traders.
Analyst Nic Puckrin stated that the cancellation of stablecoin yields is a positive development for Ethereum DeFi, as it is a major alternative for passive income. CoinFund President Christopher Perkins mentioned that DeFi can generate yields to preserve value, and this summer will become the summer of DeFi for stablecoins.
Senator Kirsten Gillibrand believes that yield-bearing stablecoins could destroy the traditional banking industry. Tether co-founder Reeve Collins stated that the competition from yield-bearing fiat tokens will eventually replace traditional stablecoins.
