Yield-Bearing Stablecoin Supply Surges Following Passage of the GENIUS Act

According to a report by Cointelegraph cited by Jinse Finance, the supply of yield-bearing stablecoins has surged since the passage of the GENIUS Stablecoin Act in July. Data shows that the biggest beneficiaries are Ethena’s USDe and Sky’s USDS, both of which offer yields when staked within their respective protocols. According to DefiLlama data, since July 18, the circulating supply of USDe has increased by 70% to $9.49 billion, making it the third-largest stablecoin by market capitalization. During the same period, the circulating supply of USDS rose by 23% to nearly $4.81 billion, ranking fourth in market capitalization. Anthony Yim, co-founder of analytics firm Artemis, stated: “Although the GENIUS Act prohibits the issuance of yield-bearing stablecoins in the United States, the supply of such stablecoins has grown significantly, making them ‘unexpected winners.’” Julio Moreno, Head of Research at CryptoQuant, noted that because the GENIUS Act bans issuers from directly providing yields to holders, investors have turned to yield-bearing or staked stablecoins to earn returns.