Coinbase CEO Brian Armstrong is advocating for U.S. lawmakers to revise stablecoin legislation to allow consumers to earn interest on digital currencies. He argues that current rules protect banks while stifling innovation, asserting that both banks and crypto firms should be incentivized to share interest with consumers. Armstrong's call for regulatory flexibility comes as a response to the proliferation of new altcoins, which he noted at one million launches per week, prompting a review of Coinbase's listing process. In addition, he highlighted the need to pass on yields from backed assets, like U.S. Treasuries, to users. His comments arise as lawmakers deliberate two major stablecoin bills—the House’s STABLE Act and the Senate’s GENIUS Act—which treat stablecoin issuers as financial institutions under the Bank Secrecy Act. This treatment could favor U.S. firms while disadvantaging global competitors.

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