Coinbase CEO: Banks are using false threats against stablecoin reward policies

ChainCatcher news, Coinbase CEO Brian Armstrong recently stated in Congress that the banking industry's opposition to cryptocurrency exchanges offering stablecoin rewards under the guise of systemic risk is creating a "false threat." Currently, Coinbase offers a 4.1% reward for USDC holders, while the banking industry is concerned that this could lead to a significant outflow of deposits into stablecoins. The U.S. Treasury's Borrowing Advisory Committee estimates that up to $6.6 trillion in deposits could shift to stablecoins.

Armstrong believes that the true intention of the banking industry is to protect its $180 billion payment business revenue. In response, Wyoming Republican Senator Cynthia Lummis stated that the issue has been addressed in the "GENIUS Act" and should not be re-discussed.