According to Cointelegraph, the GENIUS Act signed by President Trump on Friday officially banned yield-bearing stablecoins, cutting off channels for institutions and retail investors to earn interest through stablecoins. These stablecoins previously typically created returns for holders through methods like staking or lending.
Crypto analyst Nic Puckrin pointed out that this move is "positive for Ethereum-based DeFi" because DeFi provides alternative sources of income that can be used to generate passive income or combat fiat currency inflation.
Christopher Perkins, President of CoinFund, also stated: "Dollars without yield are a depreciating asset, while DeFi is a place that can generate income and preserve asset value."
