Breaking News
Hey friends, here’s some cool and important news that’s shaping the crypto world—especially for DeFi fans:
The U.S. just passed the GENIUS Act, which creates a strong regulatory framework for payment stablecoins. This means that stablecoins will have to be issued by licensed entities, backed 1-to-1 with safe, liquid assets like cash or Treasuries, and meet strict rules for transparency, audits, and anti-money laundering compliance .
So why does this matter for DeFi? Even though this law doesn't regulate DeFi protocols directly, it makes stablecoins more transparent and credible—which in turn strengthens the lending systems built on top of them. It’s a boost for institutional confidence without compromising the decentralized nature of DeFi .
But there’s a twist: the GENIUS Act bans yield-bearing stablecoins, meaning stablecoin issuers can’t pay interest on holdings. That limitation is actually seen by many as good news for DeFi—because with no yield offered directly by stablecoins, the demand for lending platforms and other DeFi services might grow even stronger .
In short: the GENIUS Act lays down the rules that make stablecoins safer and more trustworthy, which is a win for DeFi lending and long-term adoption—even if it limits some centralized yield options.
Source: Article from crypto.news