Trump Signs GENIUS Act Banning Yield-Bearing Stablecoins

Former U.S. President Donald Trump has signed the GENIUS Act into law, introducing sweeping regulations for the crypto industry, including a ban on yield-bearing stablecoins. This legislation is poised to reshape the stablecoin market, which includes major players like Ethereum-backed DAI and centralized options like USDC. The act targets high-risk lending practices associated with yield-generation platforms and aims to protect consumers from potential financial instability. Ethereum $ETH , often used in DeFi protocols offering yield on stablecoins, may feel indirect impacts, as regulatory tightening affects liquidity and user activity. ETH is currently down 0.74%, possibly reflecting market uncertainty around these regulatory developments. The GENIUS Act could stifle innovation in some areas while encouraging stablecoin providers to explore more compliant models. Analysts expect increased scrutiny on DeFi platforms and a shift toward on-chain transparency and security-focused design. This policy move adds pressure for global jurisdictions to align on digital asset governance.