Ethereum News Today: U.S. GENIUS Act Sparks 25% Ethereum Surge as DeFi Adapts to Yield Restrictions

The U.S. implementation of the GENIUS Act in July 2025 has triggered significant shifts in the cryptocurrency market, particularly affecting yield generation strategies and the role of stablecoins. The legislation, which prohibits interest payments to token and stablecoin holders, directly impacts decentralized finance (DeFi) protocols by curbing traditional revenue models. Market participants are now recalibrating approaches, with Ethereum staking emerging as a prominent alternative. Ethereum’s price surged 25% following the policy’s enforcement, reflecting heightened demand for non-yield-based investment vehicles [1].

The Act’s restrictions on stablecoins such as USDT, USDC, and DAI have forced DeFi platforms to innovate in tokenomics design, prioritizing non-interest-bearing mechanisms [1]. Analysts note parallels to China’s 2021 crypto trading ban, which similarly disrupted market dynamics and spurred adaptation [2]. OxCousin, a macro analyst at IOBC Capital, emphasized the need for flexibility in navigating regulatory changes, stating, “The market is like a vast ocean; we cannot predict the storms, only adjust the sails in the midst of them” [1].

Ethereum’s performance underscores the sector’s pivot toward staking and consensus-driven value accrual. With a current price of $3,810.12 and a 90-day price surge of 108.46%, ETH has solidified its position as a key asset in the post-GENIUS landscape [1]. The Coincu research team highlighted that DeFi protocols may evolve rapidly to align with the Act’s framework, potentially fostering innovation in non-yield-based models [1]. However, increased regulatory scrutiny could reshape long-term investment strategies and financial forecasts within the crypto sector [1].

The policy’s broader implications extend beyond DeFi, influencing Bitcoin’s dominance and overall market sentiment. While Bitcoin’s role remains central, Ethereum’s surge has intensified competition for yield-generation mechanisms, reflecting divergent strategic priorities in a regulated environment [1]. Market observers anticipate further adjustments as protocols adapt to the new legal landscape, balancing compliance with user incentives.

Source: [1] [U.S. GENIUS Act Shakes Crypto Market Dynamics] [https://coinmarketcap.com/community/articles/6887a901fb9c334040026072/] [2] [U.S. GENIUS Act Shakes Crypto Market Dynamics] [https://coinmarketcap.com/community/articles/6887a901fb9c334040026072/]