Coinbase: The Interest on Digital Yuan May Cause the U.S. to Lose Its Stablecoin Advantage

Coinbase stated that the proposed amendments to the GENIUS Act could undermine the United States' position in the global expansion of digital payments. Meanwhile, the strategic introduction of interest-bearing features for the digital yuan will create new pressures for U.S. policymakers, as the interest framework may attract yield-seeking users. This dynamic could reshape the competitive landscape, making the digital yuan a more explicit competitor to stablecoin products.

Coinbase warned that limiting stablecoin reward options could reduce the competitiveness of stablecoins, while internal lobbying efforts have heightened tensions. Coinbase maintains that the leading position of stablecoins supports the strength of the dollar and asserts that policy adjustments must consider the international landscape. U.S. legislators now face a decision that could impact the direction of the next phase of digital payments.