Coinbase News: CEO Brian Armstrong Urges Legislation for Stablecoin Interest to Promote Fairer Financial Access

In a recent move to advocate for the evolution of stablecoins, Coinbase CEO Brian Armstrong has published a compelling argument urging lawmakers to support legislation that would enable consumers to earn interest directly from their digital dollar holdings.

Coinbase CEO Urges Stablecoin Interest Legislation for Fairer Financial Access

Coinbase CEO Brian Armstrong has called on lawmakers to support stablecoin legislation that would allow consumers to earn interest directly from their digital dollar holdings. Armstrong published a detailed post on March 31 arguing that the next phase of stablecoin innovation should include ’onchain interest’, enabling holders of fiat-backed stablecoins to receive a share of the yield generated by underlying reserve assets such as short-term US Treasuries. This, he framed, would be a ’win-win’ for consumers, global financial access, and long-term US economic strength. Currently, banks offer interest-bearing accounts under regulatory exemptions, but stablecoin issuers face legal uncertainty preventing them from sharing interest with users without potential legal implications.

Coinbase CEO Slams ‘Outdated’ Stablecoin Rules, Pushes for Interest Payments

Coinbase CEO Brian Armstrong has called on U.S. lawmakers to ensure that stablecoin legislation allows consumers to earn interest. Armstrong argued that pending legislation should let crypto firms offer “onchain interest” to stablecoin holders, a feature that would allow digital dollars to function like interest-bearing checking accounts. He wrote that the government shouldn’t protect banks at the expense of innovation or the public, and that both banks and crypto companies should be incentivized to share interest with consumers, consistent with a free market approach.