- U.S. enacts GENIUS Act, banning crypto yield payments to token holders.
- DeFi adaptations emerge as stablecoin yields end.
- Market shifts with rising Ethereum interest and Bitcoin dominance.
The U.S. implemented the GENIUS Act in July 2025, banning yield payments to stablecoin and token holders, amid geopolitical tensions and regulatory changes predominating the crypto sector.
Market strategies shift as diminished stablecoin yields incentivize increased Ethereum staking, reshaping yield generation tactics in decentralized finance.
GENIUS Act Alters Crypto Yield and Investment Landscape
The U.S. has enacted the GENIUS Act, spearheaded by President Trump, which bans interest payments to token and stablecoin holders. This law affects the decentralized finance (DeFi) sector, prompting strategic shifts and influencing the macro crypto environment.
The policy restricts stablecoins like USDT, USDC, and DAI from offering interest, reshaping investment strategies within the sector. Ethereum’s staking has gained traction as investors seek alternative yield opportunities, reflected in a 25% rise in ETH value.
“The market is like a vast ocean; we cannot predict the storms, only adjust the sails in the midst of them,” remarked OxCousin, Macro Analyst at IOBC Capital, highlighting the market changes. Substantial discourse emerges among DeFi communities adapting to these shifts. Notable market commentary points to the broader implications on U.S. economic policy.
Stablecoins Impacted; ETH Price Rises by 25%
Did you know? The U.S. GENIUS Act mirrors past regulatory shocks experienced from China’s 2021 crypto trading ban, which also caused significant market volatility and adaptation.
According to CoinMarketCap, Ethereum (ETH) currently trades at $3,810.12. With a market cap of $459.92 billion and dominating 11.79% of the market, ETH displays strong price momentum particularly over the past 90 days, rising by 108.46%.
The Coincu research team suggests DeFi protocols may rapidly evolve to adapt to this new legislation, potentially spurring innovation in non-yield-based tokenomics. The broader crypto market could witness increased regulatory scrutiny, impacting strategies and financial forecasts. Notable market commentary points to the broader implications on U.S. economic policy.
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Source: https://coincu.com/news/us-genius-act-crypto-yield-ban/