Trump’s GENIUS Act May Boost Ethereum and DeFi Adoption
The newly signed GENIUS Act by former President Donald Trump could significantly impact the crypto market, particularly Ethereum (ETH) and decentralized finance (DeFi). The law bans yield-bearing stablecoins, restricting institutions and retail investors from earning interest on stable assets like USDT or USDC.
Analysts suggest this move may drive demand toward DeFi platforms, where users can generate passive income through lending, staking, and liquidity pools. Nic Puckrin, a crypto analyst, believes DeFi could become the primary alternative for yield-seeking investors. Meanwhile, CoinFund’s Christopher Perkins predicts a shift from a "stablecoin summer" to a "DeFi summer," with capital flowing into protocols like Aave and Compound.
Critics argue the law protects traditional banks, but proponents, including Senator Kirsten Gillibrand, claim yield-paying stablecoins threaten financial stability. As the market adapts, Ethereum and DeFi may emerge as key beneficiaries of this regulatory shift.
