Analyst: The "GENIUS Act" is favorable for Ethereum-based DeFi

ChainCatcher news, according to Cointelegraph, the "GENIUS Act" signed by President Trump on Friday officially prohibits the issuance of yield-bearing stablecoins, cutting off the channels for institutions and retail investors to earn interest through stablecoins. These types of stablecoins previously generated returns for holders typically through mechanisms such as staking or lending.

Crypto analyst Nic Puckrin pointed out that this move is "positive for Ethereum-based DeFi," as DeFi provides alternative sources of yield that can be used to generate passive income or combat fiat currency inflation.

Christopher Perkins, president of CoinFund, also stated, "A dollar without yield is a depreciating asset, while DeFi is a place where yield can be generated and asset preservation can be achieved."