TechFlow news, July 19 — According to Cointelegraph, U.S. President Trump signed the GENIUS Act on Friday, banning the issuance of yield-bearing stablecoins and cutting off interest-earning opportunities for both institutional and retail investors. These stablecoins generate interest or returns for holders through yield mechanisms such as staking or lending.
Cryptocurrency analyst Nic Puckrin said that eliminating yield from stablecoins is "good news for Ethereum-based DeFi, as DeFi is the primary alternative for generating passive income." Yield not only serves as a source of passive income but can also help mitigate the impact of fiat currency inflation.
Christopher Perkins, president of CoinFund, also stated: "Without yield, the dollar is a depreciating asset. DeFi is where value preservation with yield generation happens."
