GENIUS Act: Really?! 🙄

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Okay, so this GENIUS Act thing. Supposedly it’s gonna, like, help with stablecoins, right? More access to the dollar, blah blah blah. But here’s the kicker – they can’t *pay* interest on these things. I mean, seriously? What is this, amateur hour?

And you know who this screws over? The smart money. The people who actually *expect* a return. Luckily for *them*, there’s DeFi. You know, that whole… complicated thing. Apparently, it’s full of ways to still make money. Go figure. So, they restrict one thing and it magically funnels money to… somewhere else. It’s unbelievable. 🤦‍♂️

Will People Just Run to DeFi Now?

This law is, like, officially a law now. Which means more stablecoins. Great. Everyone’s excited. Apparently, it’s “safe” now. As if a piece of paper makes anything safe.

The irony is, the part where they *can’t* pay interest? That could actually make DeFi… better? Because if you can’t get paid interest on the official ones, where are you gonna go? Exactly.

They hold all this money in boring stuff like Treasury bills. But they can’t give *you* any of the interest? It’s just… infuriating! Why even bother!

“The GENIUS Act isn’t about DeFi—it’s about the *other* guys. But it’s good for DeFi. More dollars, more people… more problems? Just kidding! More *finance*.”

— Jake Chervinsky (@jchervinsky) July 18, 2025

Institutions, you know, the big boys, they have to *make* money. It’s, like, in their job description. So if the legit stablecoins don’t pay, they’ll go elsewhere. It’s called supply and demand, people. Simple.

So DeFi becomes the answer? Oh, fantastic. Another thing I have to try to understand.

Redirecting the Hunt for a Buck

Apparently, the big stablecoin people – USDT, USDC – weren’t paying interest anyway. So, this Act doesn’t change much for *them*. But it does make it harder for anyone new to play the game. That’s… something.

“It could push people toward DeFi platforms. More transparent, maybe even more money. DeFi could be the place to go for yield. Especially if the rules become, you know, clearer.”

And people *are* moving. To aUSDT, sUSDe… more acronyms! They’re staking, lending, whatever that means. It’s all very tiring.

So, it doesn’t eliminate the desire for interest. It just sends it… somewhere else. Which is just like everything else, isn’t it? It’s always somewhere else.

DeFi and the… Sophisticated Investors

Apparently, DeFi offers “programmable yield” and “global liquidity”. I have no idea what that means, but it sounds expensive. And it’s “underpinned by transparent smart contracts”. Transparent? In crypto? I’ll believe it when I see it.

“DeFi offers… all this stuff. But you need risk management, audits… compliant custody solutions. It’s a whole thing, okay?”

They’re talking about “real yield” – money made from *actual* activity, not just… giving tokens away. Trading fees, lending…sounds like Wall Street with extra steps.

Will the Old Guard Fight Back?

Some lawyer, Eli Cohen, says this doesn’t prevent *everyone* from paying interest. Banks can do it! So now the banks are getting involved? Oh, wonderful. They’ll just create their *own* DeFi, regulated, of course. It’ll be even more complicated. 🙄

Banks: The Future? Seriously?

Apparently, if banks start issuing stablecoins, it’ll bring a ton of new people into crypto. Because everyone loves their bank. Right.

“If JPM Chase and Citi start doing this, it’ll be huge. There are a lot of bank account holders in this country.”

And if the banks get involved, they’ll fight to protect it. Because they have, you know, *power*.

The Bottom Line (Whatever That Is)

Everyone agrees this Act will make crypto bigger. Whether it’s because of fancy investors, banks getting involved, or just more people stumbling into it… who knows? It’s chaos! But probably good chaos. Maybe.

I’m just saying, it’s a whole lot of moving parts. And I’m tired just thinking about it.

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2025-07-24 23:12