Donald Trump's signed 'Profitable Stablecoin Ban' bill is expected to open up new opportunities for the Ethereum (ETH) based DeFi ecosystem. The analysis suggests that as interest income through stablecoins is blocked, investors are more likely to choose DeFi as an alternative.
The 'GENIUS Bill' signed by President Trump completely prohibits the issuance and circulation of 'profitable stablecoins' that pay interest by depositing or lending stablecoins linked to legal currencies like dollars. The structure that previously provided returns using DeFi mechanisms such as staking and lending has been legally blocked.
Cryptocurrency analyst Nick Pubcrin said, "The exit of profitable stablecoins is a very positive signal for Ethereum-based DeFi" and predicted that "investors seeking returns will now choose DeFi as an alternative".
CoinFund President Christopher Perkins emphasized, "The dollar is an asset that depreciates without interest" and "DeFi is where you can create returns while preserving value". He added, "The era of stablecoins is ending, and now the season of DeFi is beginning".
With this bill limiting the role of stablecoins, demand for DeFi platforms operating on Ethereum is expected to be further highlighted. Attention is focused on whether investor funds will move to decentralized finance to avoid institutional regulations.
