The US fresh stablecoin legislation could boost demand for Ether and DeFi apps on the Ethereum network as yield-bearing stablecoins are banned, impacting passive income generation and inflation mitigation. Ethereum dominates the DeFi sector with the removal of yield on stablecoins creating opportunities for DeFi summer. Financial institutions seek yield onchain, driving institutional capital into crypto. US Senator Kirsten Gillibrand warns yield-bearing stablecoins could disrupt traditional banking, potentially eroding banking profits and displacing traditional stablecoins. Tether co-founder Reeve Collins predicts competition from yield-bearing fiat tokens will replace traditional stablecoins as investors seek higher yields.

Read more at Cointelegraph: The GENIUS Stablecoin Bill Prohibits Yield, ETH Stands to Benefit