Analyst: The GENIUS Act bans yield-generating stablecoins, which will boost demand for DeFi

PANews reported on July 19 that according to Cointelegraph, the GENIUS Act signed by US President Trump on Friday prohibits the issuance of yield-based stablecoins, cutting off interest-earning opportunities for institutions and retail investors. Such stablecoins create interest or returns for holders through yield mechanisms such as staking or lending. In this regard, cryptocurrency analyst Nic Puckrin said that the cancellation of stablecoin yields "is good news for Ethereum-based DeFi, as DeFi is the main alternative for creating passive income." The income can be used not only for passive income, but also to alleviate the impact of fiat currency inflation. Christopher Perkins, president of CoinFund, also said: "Without income, the US dollar is a depreciating asset. DeFi is a place where income can be created to preserve value. Therefore, I think the summer of stablecoins will become the summer of DeFi."