⚡Good News: The GENIUS Act, the first federal regulation for stablecoins in the United States, has officially landed, which is the first time that the federal government has recognized the legal existence of stablecoins. 1️⃣ Clear compliance: Stablecoins must be 1:1 US dollars or short-term debt reserves, and the asset composition should be disclosed every month. 2️⃣ Cut off the way for yield-bearing stablecoins: Interest is not allowed, money cannot be made like banks or DeFi protocols, and disguised income design is not allowed. Traditional stablecoins can no longer engage in income, so what should users do if they still want to earn? - You can only find your way to the chain. Therefore, the yield logic is stripped away, allowing DeFi (especially the native interest rate market) to take on the role of a passive income source! ✅ Good 👉🏻 for on-chain DeFi native yield protocols Pendle: The largest structured yield protocol for stablecoins, providing on-chain yield splits and future yield trading. Morpho, Spark, Aave, Compound: These protocols provide on-chain lending rates and pledge income, which are natural exports for future on-chain interest rate spreads. ❌ Bearish 👉🏻 for CeFi yield-yielding stablecoins & pseudo-DeFi projects Projects that focus on stablecoins + annualized returns to attract users, especially those without transparent reserves and legal endorsements, may be classified as illegally issuing financial products. Some RWA projects that use stablecoins as a carrier to earn fixed income: If they cannot meet compliance requirements such as 1:1 and auditability, they may be stuck. UST is a lesson from the past, so the GENIUS Act directly regulates one-size-fits-all: If you want to be a dollar, just honestly don't engage in interest. If you want to engage in interest, don't wear the skin of stablecoins! The second spring of DeFi is really coming!