On July 19, the U.S. President Trump signed the GENIUS Act on Friday, which prohibits the issuance of yield-generating stablecoins, cutting off interest-earning opportunities for institutions and retail investors. These stablecoins create interest or returns for holders through mechanisms such as staking or lending.
Crypto analyst Nic Puckrin stated that eliminating stablecoin yields is "good news for Ethereum-based DeFi as the primary alternative for passive income generation".
Christopher Perkins, President of CoinFund, also said: "The U.S. dollar is a depreciating asset without yield. DeFi is precisely where value can be generated. Therefore, I believe the summer of stablecoins will become the summer of DeFi."
