Stablecoins currently have on-chain trading volume that exceeds the combined total of Bitcoin and Ethereum, becoming a key foundational currency for decentralized finance (DeFi) trading, lending, and payments. As U.S. legislators advance the “GENIUS Act,” a regulatory framework focused on issuer reserves, audits, and licensing is gradually taking shape. This shift divides liquidity into “compliant” and “peripheral” segments, forcing DeFi protocols to prioritize assets like USDC and adapt to institutional constraints. While this means reduced risk and returns, it also solidifies Ethereum’s position as the primary settlement layer and benefits publicly traded companies like Coinbase, as they can integrate regulated stablecoin services.