PANews reported on January 28th that Matrixport's chart analysis today suggests the GENIUS Act is expected to prohibit stablecoin providers from paying interest or returns to holders. Funds may therefore shift to yield-generating alternatives such as tokenized money market funds. USDC has seen net redemptions of approximately $6.5 billion over the past six weeks, leading to a contraction in stablecoin liquidity and weakening short-term buying power in the crypto market.

Meanwhile, funds are flowing out of stablecoins and into traditional safe-haven assets such as gold and silver, further contracting the supply of stablecoins. Correspondingly, Circle is shifting its focus from "market capitalization" to "trading activity," and through initiatives like the Circle Payment Network and collaborations with companies like Intuit, it is promoting the use and payment of stablecoins in real-world scenarios.