Haciyev Reşit 
While debates over stablecoin regulations continue in the crypto sector, a notable bullish scenario has emerged for Ethereum. Milana Valmont, founder of Valmont Group, stated that the proposed U.S. ban on paying interest on stablecoins could, in the long term, serve as a strong bull catalyst for Ethereum. According to Valmont, limiting interest payments on stablecoins could redirect trillions of dollars into the DeFi ecosystem and give the Ethereum network a more central role in global financial infrastructure.
GENIUS Act Debate and Stablecoin Interest Controversy
The GENIUS Act currently under discussion in the U.S. Congress includes debates over whether stablecoins can pay interest and whether banks can pass Treasury yields on to users. Valmont notes that the very fact these discussions are happening indicates that stablecoins are no longer just a crypto experiment—they are becoming central to the U.S. financial system. Officials openly discussing trillions of dollars moving on-chain signals a structural transformation in financial infrastructure.
Valmont highlights that if stablecoins are legally prohibited from paying interest, capital will seek alternative returns. In her view, money flows like water to the highest-yielding opportunities. If digital dollars are stuck at zero yield, large capital may move from banks into DeFi protocols. This could turn Ethereum not just into a payment network but into a 24/7 global capital market.
ETH Value Capture Could Strengthen
In this scenario, all stablecoin transactions and DeFi activity on Ethereum directly generate value for ETH. Every transfer, tokenized asset, and DeFi operation uses ETH, and as network usage increases, ETH supply could shrink through transaction fees and burn mechanisms. Valmont believes that trillions of dollars circulating on Ethereum could elevate ETH’s role as “digital fuel” and create long-term upward price pressure.
She also argues that AI-powered financial agents could accelerate capital flows, automatically detecting interest rate differences in milliseconds and directing funds to DeFi protocols. This could enable fast arbitrage between zero-yield stablecoins and DeFi opportunities, boosting Ethereum’s transaction volume.
Institutional Interest and Layer 2 (L2) Impact
On the institutional side, Ethereum’s Layer 2 solutions are gaining attention. Banks and fintechs prefer customizable L2 networks built on Ethereum rather than operating on a single chain. This allows institutions to maintain compliance while leveraging the main network’s security. According to Valmont, this approach provides a more integrated solution than past “network of networks” models and has the potential to attract global capital. Valmont emphasizes that the discussion should not be reduced solely to stablecoin interest. Whether or not stablecoins pay interest, as the sector grows, Ethereum’s network activity will increase. Higher activity leads to more ETH burns and tighter supply, laying the foundation for a structural bull case for Ethereum over the long term.
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