{"id":126203,"date":"2025-04-01T03:16:03","date_gmt":"2025-04-01T03:16:03","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126203"},"modified":"2025-04-01T03:16:03","modified_gmt":"2025-04-01T03:16:03","slug":"coinbase-ceo-calls-for-change-in-stablecoin-laws-to-enable-onchain-interest","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126203","title":{"rendered":"Coinbase CEO calls for change in stablecoin laws to enable \u2018onchain interest\u2019"},"content":{"rendered":"

Source: Cointelegraph.com NewsCoinbase CEO Brian Armstrong is calling for legislative changes in the US to allow stablecoin holders to earn \u201conchain interest\u201d on their holdings.
\nIn a March 31 post on X, Armstrong argued that crypto companies should be treated similarly to banks and be \u201callowed to, and incentivized to, share interest with consumers.\u201d He added that allowing onchain interest would be \u201cconsistent with a free market approach.\u201d
\nSource: Brian ArmstrongThere are currently two competing pieces of federal stablecoin legislation working their way through the legislative process in the US: the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
\nIn reference to the stablecoin legislation, Armstrong said the US had an opportunity to \u201clevel the playing field and ensure these laws pave a way for all regulated stablecoins to deliver interest directly to consumers, the same way a savings or checking account can.\u201d\u00a0
\nArmstrong: Onchain interest a boon for US economy
\nArmstrong argued that while stablecoins have already found product-market fit by \u201cdigitizing the dollar and other fiat currencies,\u201d the addition of onchain interest would allow \u201cthe average person, and the US economy, to reap the full benefits.\u201d
\nHe said that if legislative changes allowed stablecoin issuers to pay interest to holders, US consumers could earn a yield of around 4% on their holdings, far outstripping the 2024 average interest yield on a consumer savings account, which Armstrong cited as 0.41%.
\nArmstrong also said onchain interest could benefit the broader US economy \u2014 by incentivizing the global use of US dollar stablecoins. This could see their use grow, \u201cpulling dollars back to U.S. treasuries and extending dollar dominance in an increasingly digital global economy,\u201d according to the Coinbase CEO.\u00a0
\nHe also argued that the potential for a higher yield than traditional savings accounts would result in \u201cmore yield in consumers\u2019 hands means more spending, saving, investing \u2014 fueling economic growth in all local economies where stablecoins are held.\u201d
\n\u201cIf we don\u2019t unlock onchain interest, the U.S. misses out on billions more USD users and trillions in potential cash flows,\u201d Armstrong added.
\nCurrently, neither the STABLE Act nor the GENIUS Act gives the legal go-ahead for onchain interest-generating stablecoins. In fact, in its current form, the STABLE Act includes a short passage prohibiting \u201cpayment stablecoin\u201d issuers from paying yield to holders:
\nSource: STABLE ActRelated: Stablecoins, tokenized assets gain as Trump tariffs loom
\nSimilarly, the GENIUS Act, which recently passed the Senate Banking Committee by a vote of 18-6, has been amended to exclude interest-bearing instruments from its definition of a \u201cpayment stablecoin.\u201d
\nCommenting on the current state of the STABLE Act, Representative Bryan Steil told Eleanor Terrett, host of the Crypto in America podcast, that two pieces of legislation are positioned to \u201cmirror up\u201d following a few more draft rounds in the House and Senate \u2014 due to the differences between them being textual rather than substantive.
\n\u201cAt the end of the day, I think there\u2019s recognition that we want to work with our Senate colleagues to get this across the line,\u201d Steil said.
\nMagazine: SEC\u2019s U-turn on crypto leaves key questions unansweredRead More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsCoinbase CEO Brian Armstrong is calling for legislative changes in the US to allow stablecoin holders to earn \u201conchain interest\u201d on their holdings. In a March 31 post… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126203"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126203"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126203\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126203"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}