Elara’s yield-bearing stablecoin would be prohibited from operating in the United States unless it fundamentally changes its design?
Yield-Bearing Stablecoins Are Banned in the U.S!
- GENIUS Act (now law)
Signed by President Trump on July 18, 2025
Explicitly prohibits yields on permitted “payment stablecoins.” These coins must function like digital cash—no interest, no staking, no dividends.
- Purpose of the Ban
Protect traditional banks from deposit outflows
Ensure stablecoins remain purely as payment instruments, not savings substitutes .
Under GENIUS, any stablecoin offering yield must fall under securities laws, not payment-stablecoin regimes .
- Elara is a Yield-Bearing Stablecoin, yes?
Elara is explicitly advertised as a “next‑generation yield‑bearing stablecoin protocol” that distributes returns on collateral , yes?
That functionality directly conflicts with the GENIUS Act’s prohibition?
Consequences for Elara in the U.S.
Elara cannot be issued or marketed as a stablecoin to U.S. residents if it provides yield, correct?
To comply, the team must either:
Remove yield features (reduce to basic payment-stablecoin), or…?
Register it as a security or commodity, subject to SEC oversight, disclosures, and licensing ?
Looking Ahead
Offshore or Non-U.S. Issuance
Yield-bearing designs may operate under more permissive foreign jurisdictions, but not inside the U.S. payment-stablecoin regulatory framework, correct?
Possible SEC Path
If structured and registered as a security, Elara could offer yield — but it would fall outside the “payment stablecoin” category under GENIUS, yes?
GENIUS Act is now law (signed July 18, 2025).
Yield-bearing stablecoins are banned under U.S. payment-stablecoin rules, correct?
Elara’s yield feature puts it in conflict with U.S. law unless restructured or regulated as a security, yes?
RUN!! 