In July 2025, the GENIUS Act was passed, affecting the stablecoin market, particularly Ethena's USDe and Sky's USDS. This act altered the approach to issuer income and created new opportunities for investors.
What is the GENIUS Act?
The GENIUS Act prohibits stablecoin issuers from providing yields directly, enhancing interest in yield-generating stablecoins through staking. This leads to a reassessment of the competitive landscape, as market participants seek compliant solutions.
Growth of Ethena and Sky Stablecoins
Statistics show that after the passage of the act, Ethena's USDe increased by 70%, reaching $9.49 billion, while Sky's USDS grew by 23%, totaling $4.81 billion. Guy Young, CEO of Ethena, emphasized that "the demand for USDe" confirms successful compliance with regulatory requirements.
The Future of Stablecoins Under New Conditions
The effective switch to blockchain-based staking mechanisms enables investors to continue earning yields despite new restrictions. Market analysts note that yield-bearing stablecoins are becoming the key choice, altering capital allocation models in the post-GENIUS landscape.
The GENIUS Act creates new conditions for the growth and development of stablecoins, especially those utilizing staking as a means of earning, emphasizing the importance of adapting to the evolving market requirements.
