The signing of the GENIUS Act by President Donald Trump leads to significant changes in the stablecoin market in the U.S., especially concerning yield-bearing stablecoins.
Introduction: The GENIUS Act
The GENIUS Act, officially signed by Trump, took effect on July 19, 2025, and prohibits yield-bearing stablecoins in the U.S.
Ban on Yield-Bearing Stablecoins in the U.S.
This law restricts the ability of U.S. companies to offer yields on stablecoins without full regulatory authorization. Cryptocurrency analyst Nic Puckrin noted the potential for Ethereum DeFi to attract investors as an alternative source of passive income. Christopher Perkins, President of CoinFund, remarked, "The dollar is a non-yielding depreciating asset. DeFi is precisely where you can earn yield to preserve value."
Prospects for Ethereum and DeFi
Research suggests that as regulatory clarity increases, compliant frameworks may attract more institutional investment while pushing non-compliant yield-bearing products out of U.S. markets. Historical trends indicate a potential rise in DeFi protocol TVL as users seek on-chain yield alternatives.
The ban on yield-bearing stablecoins in the U.S. introduced by the GENIUS Act could lead to significant changes in the financial market, increasing interest in DeFi solutions.
