Coinbase CEO Pushes for Stablecoin Interest to Boost U.S. Economic Edge
Coinbase CEO Brian Armstrong is urging U.S. lawmakers to revise stablecoin regulations to allow holders to earn onchain interest — a move he says would benefit consumers and bolster the American economy.
In a March 31 post on X, Armstrong advocated for cryptocurrency companies to be treated similarly to banks, enabling them to offer interest payments to holders. He argued that such changes would support a free market approach, allowing consumers to directly benefit from holding stablecoins.
Two Key Stablecoin Bills in Focus
Armstrong’s call comes amid the ongoing development of two major federal stablecoin bills in the U.S.: the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. He believes that legislative reforms could level the playing field, allowing all regulated issuers to pay interest to consumers, much like traditional banks do with savings accounts.
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According to Armstrong, introducing onchain interest could significantly enhance the appeal of stablecoins, giving average consumers the ability to earn a meaningful yield on their holdings. He cited the possibility of holders earning up to 4% interest — a figure far exceeding the current average savings account yield of 0.41% in 2024.
Beyond individual gains, Armstrong argued that onchain interest could drive broader economic benefits. He suggested that incentivizing stablecoin use through interest payments would encourage global adoption of U.S. dollar-backed cryptos, reinforcing the dollar’s dominance in an increasingly digital global economy and channeling more capital back into U.S. treasuries.
Higher Consumer Yields Could Fuel Economic Growth
Armstrong emphasized that providing consumers with higher yields through stablecoins could lead to increased saving, investing, and spending, ultimately stimulating local economies. “If we don’t unlock onchain interest, the U.S. misses out on billions more USD users and trillions in potential cash flows,” he warned.
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However, neither of the proposed bills currently allows for interest-bearing stablecoins. In fact, the STABLE Act explicitly prohibits payment issuers from offering yield to holders. Similarly, the GENIUS Act — which recently advanced through the Senate Banking Committee with an 18-6 vote — excludes interest-bearing instruments from its definition of a payment stablecoin.
Commenting on the legislative process, Representative Bryan Steil noted that the two bills are likely to be reconciled after further drafting in both the House and Senate. He expressed optimism that lawmakers could collaborate to finalize a unified bill that addresses these regulatory challenges.
🚨NEW: @RepBryanSteil tells me that after Wednesday’s markup, the STABLE Act will be “well positioned to mirror up” with the Senate’s GENIUS Act following a few more “draft rounds” in the House and Senate with technical assistance from the @SECGov and @CFTC.
— Eleanor Terrett (@EleanorTerrett) March 31, 2025
He believes that…
Armstrong’s push for legislative change reflects the growing importance of stablecoins in the global financial landscape and the potential to enhance U.S. economic competitiveness in the digital age.
