The GENIUS Act: Will DeFi Surge as Stablecoin Yield Gets Banned? 🔎 As stablecoin issuers lose the right to offer interest, yield-hungry capital needs a new home. Could DeFi step in? Experts from @CryptoQuant_com, @sentoraHQ & @centrifuge weigh in 👇
1/ The GENIUS Act officially bans stablecoin issuers from offering interest to holders. But this yield vacuum could redirect capital to DeFi protocols, where yield flows freely through lending, staking & real-world asset tokenization.
2/ The GENIUS Act isn’t shaking the giants. @CryptoQuant_com’s Head of Research @jjcmoreno says: "The largest stablecoins as USDT and USDC have never offered direct yield to their holders, as such there is no material change in this from the GENIUS Act."
3/ DeFi could become the new yield magnet. @sentoraHQ’s Head of Research @juan_p2p breaks it down: "This could redirect investor capital toward decentralized platforms offering more transparent and potentially higher-return opportunities, such as lending protocols, liquidity pools, and tokenized real-world assets."
4/ TradFi isn't out of the game, it's re-entering with a new playbook. @centrifuge General Counsel Eli Cohen sees opportunity: "Only the stablecoin issuer is blocked from offering yield, but others can do so, including now banks and broker-dealers. The GENIUS Act will expand the opportunities for stablecoins and not restrict them."
The GENIUS Act changes everything for stablecoins, especially their ability to offer returns. 🧊 But could this ban boost DeFi’s appeal to institutions? From yield bans to DeFi booms @c_grigera connects the dots with insider insight 👇
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