The lack of profitable options for U.S.-regulated stablecoins under the GENIUS bill will lead investors to seek other opportunities to increase profits.
The GENIUS bill imposes limits on regulated stablecoins in the U.S., reducing direct profit opportunities. Therefore, investors may look towards other channels outside U.S. stablecoins to optimize their investment returns.
MAIN CONTENT
The GENIUS bill limits the profitability tools available for stablecoins in the U.S.
Investors will seek alternative profit channels outside U.S. stablecoins.
Impact on the cryptocurrency market and global stablecoin investment strategies.
How does the GENIUS bill affect regulated stablecoins in the United States?
According to financial experts, the GENIUS bill restricts the generation of yields from U.S.-regulated stablecoins, making these products less attractive compared to other investment channels.
The bill aims to enhance oversight and control of U.S.-regulated stablecoins while limiting the profitability methods available for this currency. This has led many experts to predict a shift in capital flows to other more flexible cryptocurrency and DeFi products.
The restriction on yields from stablecoins under the GENIUS bill will create pressure to shift capital flows to more profitable investment options within the global cryptocurrency ecosystem.
John Harris, Financial Strategy Director, 2024
Why will investors seek profits outside U.S. stablecoins?
This is due to reports from various cryptocurrency market research organizations indicating that the limited yields available from U.S. stablecoins will not meet the income expectations of professional investors or high-net-worth individuals.
When stable profit options are restricted, capital will shift to higher-yielding product forms such as DeFi, yield farming, staking on other blockchains, or unregulated stablecoins in the U.S. According to an analysis from a Coin Metrics survey in 2024, 67% of cryptocurrency investors will consider diversifying their portfolios to optimize profits, not relying solely on regulated stablecoins.
Professional investors are always seeking optimal profitability; if an asset type is restricted, they will quickly pivot to avoid missing opportunities.
Emily Nguyen, Cryptocurrency Analyst, 2024
How does the GENIUS bill impact the global cryptocurrency market?
Based on expert opinions, the yield limits on U.S.-regulated stablecoins will indirectly affect capital flows and the development trends of cryptocurrency and DeFi projects on a global scale.
As investment capital changes direction, blockchain projects outside the United States may benefit from liquidity and investor interest while promoting the development of products with more diverse profitability features. A report from the Global Blockchain Organization in 2024 indicates that this trend is becoming evident with an increase in users and transaction value of non-U.S. regulated stablecoins.
Frequently Asked Questions
What is the GENIUS bill?
The GENIUS bill is a legislative proposal aimed at tightly regulating the operations of U.S.-regulated stablecoins, especially limiting the generation of yields from these coins.
What yield do U.S.-regulated stablecoins offer?
The yields of U.S.-regulated stablecoins under the new regulations will be significantly restricted, reducing their attractiveness to investors expecting stable income.
What should cryptocurrency investors do in light of the GENIUS bill?
Investors need to diversify their portfolios, seeking other profitable channels such as DeFi, staking, or international stablecoins with more flexible regulations.
How does the GENIUS bill affect the DeFi market?
The bill may drive capital flows into DeFi products not regulated in the U.S., facilitating stronger growth for this ecosystem.
What risks do non-U.S. regulated stablecoins carry?
Investing in unregulated stablecoins may carry higher legal risks and price volatility; investors should be cautious when making selections.
Source: https://tintucbitcoin.com/ethereum-defi-but-pha-nho-lenh-cam/
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