INSUBCONTINENT EXCLUSIVE:
The US fresh stablecoin legislation could create more demand for Ether (ETH) and decentralized finance applications, which are primarily
based on the Ethereum network, according to analysts.The GENIUS bill, signed into law by US President Donald Trump on Friday, bans
yield-bearing stablecoins, cutting off interest-earning opportunities for institutions and retail traders
This type of stablecoin generates interest or returns for the holder through yield-generating mechanisms, like staking or lending
decentralized finance sector
Source: DeFiLlamaInterest-bearing opportunities are attractive to retail participants, but critical for financial institutions that are
beholden to shareholders and must generate cash flow or realize gains on capital assets to satisfy their fiduciary obligations to
space, as these financial institutions chase yield onchain.Related: Nasdaq files application to add staking for BlackRock iShares ETH
ETFSpeaking at the DC Blockchain Summit in March, US Senator Kirsten Gillibrand said that yield-bearing stablecoins could kill the
traditional banking sector.The senator argued that private stablecoin issuers passing on interest opportunities to customers would undermine
the market for loans and crater demand for legacy banking services.First page of the GENIUS stablecoin bill
University professor Austin Campbell shot back against the banking industry in a May X post, claiming that traditional banks are threatened
by yield-bearing stablecoins, because they can potentially erode banking profits
these yield-bearing fiat tokens will eventually displace traditional stablecoins altogether, according to Tether co-founder Reeve
