Coinbase CEO Pushes for Stablecoin Interest Rights
Coinbase CEO calls for U.S. stablecoin laws to permit users to earn interest directly from reserve assets.
- Brian Armstrong urges lawmakers to modernize stablecoin laws.
- Current laws prevent stablecoins from offering interest to users.
- Armstrong likens stablecoins to interest-bearing checking accounts.
Coinbase CEO Brian Armstrong is calling on U.S. lawmakers to update outdated financial regulations so stablecoin users can benefit more directly from the assets backing these digital dollars.
In a recent statement, Armstrong argued that U.S. stablecoin legislation should allow consumers to earn interest from the reserves held by stablecoin issuers. According to him, the technology already exists to make this happen, but the law has yet to catch up with the innovation.
Stablecoins as the New Interest-Bearing Accounts
Armstrong described stablecoins as a modern version of checking accounts that could be interest-bearing. Just like traditional bank accounts generate interest from deposits, stablecoin holders should also be entitled to earn interest from the reserve assets held by issuers.
He emphasized that stablecoins represent a secure and transparent form of money, fully backed by real assets. However, current U.S. securities laws don’t permit issuers to pass along interest from these reserves unless they go through complex regulatory processes.
This results in a missed opportunity for everyday users who store value in stablecoins but earn nothing in return. Armstrong believes changing the law could boost adoption and bring fairer benefits to users.
Regulatory Lag Holding Back Innovation
Despite rapid progress in crypto and fintech, regulations are lagging. Armstrong pointed out that while the infrastructure is in place to distribute interest to stablecoin users, U.S. laws don’t currently provide the legal pathway to do so.
The absence of specific legislation keeps stablecoin products from evolving into something more user-friendly and profitable. Armstrong called for reforms that would align financial laws with the capabilities of modern blockchain-based systems.
Such a move, he suggests, would not only benefit consumers but also strengthen the U.S. position as a leader in digital finance.
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