Coinbase CEO Pushes for Stablecoin Interest in the U.S.
Coinbase CEO Brian Armstrong is urging U.S. regulators to allow consumers to earn interest on stablecoins. In a recent X post,Armstrong highlighted the benefits of this move for consumers,global financial access,and the U.S. economy.
Stablecoins, which are usually backed by the dollar and held in low-risk assets like U.S. Treasuries, currently don’t pass on the interest from their reserves to users.Armstrong believes that enabling “onchain interest” could change this. He sees it as a win for Americans, comparing it to an interest-bearing checking account. Users could earn yields similar to the Federal Reserve’s benchmark rate.
Armstrong argues that U.S. consumers are losing out due to low savings account interest rates. He says onchain interest would help them keep up with high market rates, preserving their purchasing power. He believes this could be a game-changer, especially for those who earn minimal interest on savings.
He explains that stablecoins are among the largest holders of U.S. Treasuries. This makes them a key player in maintaining dollar dominance. Though, regulatory hurdles prevent stablecoins from offering interest like banks do.He calls for lawmakers to address this in upcoming stablecoin legislation. This could give users direct access to better returns.
armstrong notes that billions globally are underbanked. They could benefit from interest-earning U.S. dollars via stablecoins. He sees it as a free-market solution that keeps innovation within the U.S.He asks, “Why aren’t we doing this now? The technology is ready, but the laws haven’t caught up yet.
He sees onchain interest as a win for Americans. It could expand financial access worldwide and boost the economy. He wants a free-market approach in stablecoin laws. This would let users earn interest,similar to customary banks.He believes this would strengthen the dollar’s global role.
he points out that stablecoins are backed 1:1 by the dollar. the interest from these reserves is often kept by issuers, not users.He wants lawmakers to update regulations. This would let stablecoins offer interest, benefiting consumers and the economy. He sees it as a way to help those hurt by low savings account interest rates. He sees it as a way to keep innovation in the U.S. and help underbanked people globally.He sees it as a way to give users yields comparable to the Fed’s benchmark rate. He sees it as a way to give users a fair share of the interest from these reserves. He sees it as a way to give users a fair share of the interest from these reserves.
