#noticiascripto 🚨$ETH The new stablecoin legislation in the U.S. could generate more demand for Ether

and decentralized finance applications, which are primarily based on the Ethereum network, according to analysts.

The GENIUS Act, enacted by U.S. President Donald Trump on Friday, prohibits yield-bearing stablecoins, eliminating interest-generating opportunities for institutions and retail traders. This type of stablecoin generates interest or returns for the holder through yield-generating mechanisms, such as staking or lending.

According to cryptocurrency analyst Nic Puckrin, the removal of yield in stablecoins "is excellent news for Ethereum-based DeFi as the main alternative for generating passive income."

Yield can be used to generate passive income, but also to mitigate the effects of inflation of fiat currency.

"The dollar is an asset that depreciates without yield," said Christopher Perkins, president of CoinFund, to Cointelegraph. "DeFi is where you can generate that yield to preserve value. And for that reason, I believe that the summer of stablecoins will become the summer of DeFi."