According to Deep Tide TechFlow, on July 19, Cointelegraph reported that U.S. President Trump signed the (GENIUS Act) on Friday, prohibiting the issuance of yield-bearing stablecoins, cutting off the opportunity for institutions and retail investors to earn interest. These types of stablecoins generate interest or returns for holders through mechanisms such as staking or lending.
Cryptocurrency analyst Nic Puckrin stated: The cancellation of yield for stablecoins "is good news for Ethereum-based DeFi, as DeFi is the main alternative for generating passive income." Yields can not only be used for passive income but also to mitigate the effects of fiat currency inflation.
CoinFund President Christopher Perkins also stated: "Without yield, the dollar is a depreciating asset. DeFi is a place where yields can be generated to preserve value."
