Coinbase CEO Brian Armstrong is advocating for changes in US legislation to allow stablecoin holders to earn onchain interest. He proposed that crypto companies should be treated like banks, enabling them to share interest with customers, which Armstrong believes would align with free market principles. Currently, the STABLE Act and GENIUS Act, two federal legislative proposals, do not permit stablecoin issuers to pay interest. Armstrong argued that if legal provisions were established for onchain interest, consumers could potentially earn yields around 4%, significantly higher than savings account averages. This shift could enhance the US economy by promoting the use of US dollar stablecoins globally and increasing financial activities like spending, saving, and investing, leading to economic growth. He warned that failing to implement onchain interest could result in lost opportunities for the US market, with billions potentially in user adoption and trillions in cash flows at stake.

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