Recent US legislation on stablecoins may boost demand for Ether and decentralized finance (DeFi) applications linked to the Ethereum network, analysts suggest. The GENIUS bill, enacted by President Trump, prohibits yield-bearing stablecoins, eliminating interest-earning options for both institutions and retail investors. Crypto analyst Nic Puckrin views this as beneficial for Ethereum-based DeFi, which could become the primary source of passive income. Yield generation is crucial for countering fiat inflation, as highlighted by CoinFund President Christopher Perkins, who noted that the dollar's value diminishes without yield. This shift could lead to increased institutional investment in crypto as firms seek on-chain yields. Senator Kirsten Gillibrand warned that yield-bearing stablecoins might threaten traditional banking by reducing demand for loans. NYU professor Austin Campbell criticized the banking sector's resistance to these innovations, suggesting they fear losing profits. Tether co-founder Reeve Collins predicted that competition from yield-bearing tokens could eventually replace traditional stablecoins. Read more AI-generated news on: https://app.chaingpt.org/news

#ETH