House Financial Services Chair French Hill has dismissed requests from Coinbase CEO Brian Armstrong to allow stablecoins to generate interest, stating that legislation currently moving through Congress is focused on treating stablecoins as payment systems, not investment vehicles. Armstrong had argued that preventing interest-bearing stablecoins would hinder innovation and unfairly protect traditional banking institutions. However, Hill emphasized that there is no bipartisan consensus for such allowances, labeling stablecoins as tools for increasing payment efficiency rather than financial investments. With stablecoin regulations on the table, lawmakers are progressing towards establishing a federal framework, but Armstrong's pleas for interest-bearing options are likely to face significant opposition.

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