An expert says that the ban on the GENIUS Yield stablecoin enhances the growth of decentralized finance for Ethereum👇✅
An expert says that the ban on the GENIUS Yield stablecoin enhances the growth of decentralized finance for Ethereum
The lack of profitable options for regulated stablecoins in the U.S. under the GENIUS bill would drive investors to seek other opportunities to enhance their yields.$XRP
The GENIUS bill imposes restrictions on regulated stablecoins in the U.S., reducing direct profit opportunities. Therefore, investors may turn to other channels outside of U.S. stablecoins to improve their investment returns.
Main content $WCT
The GENIUS law limits interest-bearing instruments on stablecoins in the U.S.
Investors will seek alternative yield channels outside of U.S. stablecoins. $ERA
The impact on the cryptocurrency market and investment strategies in global stablecoins.
How does the GENIUS bill affect regulated stablecoins in the U.S.?
According to financial experts, the GENIUS bill restricts the generation of yields from stablecoins managed in the U.S., reducing the attractiveness of these products compared to other investment channels.
The bill aims to increase oversight and control over U.S.-regulated stablecoins and limit the ways they can generate profits, prompting many experts to predict a shift of capital to other more flexible crypto and DeFi products.
The enforcement of the GENIUS bill, which caps the yields on stablecoins, would create pressure to shift funds to more profitable investment options within the global cryptocurrency ecosystem.
John Harris, chief financial strategist, 2024
Why are investors seeking yields outside of U.S. stablecoins?
This is due to the limited yields available from U.S. stablecoins, according to reports from many cryptocurrency market research organizations, which will not meet the income expectations of professional investors or high-net-worth individuals.
With limited stable yield options, funds will shift to higher-yield products like DeFi, yield farming, staking on other blockchains, or unregulated stablecoins in the U.S. According to analysis from the Coin Metrics survey of 2024, 67% of cryptocurrency investors will consider diversifying their portfolios for maximum yields, beyond just relying on regulated stablecoins.
Professional investors are always looking for optimal yields, and if an asset is limited, they will quickly change direction to avoid missing an opportunity.
Emily Nguyen, cryptocurrency analyst, 2024
How does the GENIUS bill affect the global cryptocurrency market?
According to expert opinions, the yield cap on U.S.-regulated stablecoins will indirectly affect capital flows and the development trends of cryptocurrency and decentralized finance projects globally.
As venture capital shifts, blockchain projects outside the United States can benefit from liquidity and investor interest, while simultaneously seeking to develop more diverse products with profitable features. A report from the Global Blockchain Foundation 2024 shows that this trend is emerging, with an increase in users and the value of stablecoin transactions outside the U.S. regulatory scope.
Frequently Asked Questions
What is the GENIUS bill?
The GENIUS bill is a proposed law that would strictly regulate the operation of regulated stablecoins in the U.S., particularly limiting the generation of interest on these coins.
How profitable are regulated stablecoins in the U.S.?
Yields on U.S.-regulated stablecoins under the new rules will be significantly limited, reducing their appeal to investors seeking stable income.
What should cryptocurrency investors do before the GENIUS bill?
Investors need to diversify their portfolios and look for other profitable channels such as DeFi, storage, or international stablecoins with more flexible regulations.
How does the GENIUS bill impact the DeFi market?
The bill could stimulate capital flows into DeFi products that are not subject to U.S. regulation, allowing the ecosystem to thrive.
How risky are unregulated stablecoins in the U.S.?
Investing in unregulated stablecoins may carry legal risks and price volatility, so investors should exercise caution when making choices.
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