Coinbase CEO calls on U.S. authorities to change stablecoin laws
Coinbase CEO calls for stablecoin interest to boost U.S. economic strength.
Coinbase CEO Brian Armstrong is urging U.S. lawmakers to modernize financial regulations and allow stablecoin holders to earn onchain interest, a move he says could unlock significant economic benefits for consumers and bolster U.S. dollar dominance in the digital economy.
In a March 31 post on X, Armstrong made a public appeal for legislative changes that would permit crypto platforms to share interest with stablecoin users—similar to how banks offer interest on savings and checking accounts.
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“This would be consistent with a free market approach,” he wrote, arguing that crypto companies should be treated like banks when it comes to sharing yield with consumers.
A Missed Opportunity?
Armstrong highlighted that stablecoins have already proven their utility by digitizing fiat currencies, but the inability to provide yield means the U.S. is leaving economic value on the table. He estimated that if regulations allowed for onchain interest, consumers could earn around 4% yield—a stark contrast to the 0.41% average for U.S. savings accounts in 2024.
“More yield in consumers’ hands means more spending, saving, investing — fueling economic growth in all local economies where stablecoins are held,” Armstrong stated.
He also emphasized the potential macroeconomic upside: enabling onchain interest would incentivize global usage of U.S. dollar-backed stablecoins, bringing more capital into U.S. treasuries and extending dollar dominance in an increasingly digital financial system.
Two Competing Bills in Congress
Armstrong’s comments come as two key pieces of federal stablecoin legislation—the STABLE Act and the GENIUS Act—work their way through Congress. However, both currently prohibit interest-bearing stablecoins.
- The STABLE Act includes language that explicitly bans yield payments by “payment stablecoin” issuers.- The GENIUS Act, which recently passed the Senate Banking Committee, was amended to exclude interest-bearing instruments from its stablecoin definition.
Despite these restrictions, lawmakers appear open to finding common ground. Representative Bryan Steil told Crypto in America host Eleanor Terrett that the bills are “textually different, not substantively,” and are on track to be reconciled in upcoming draft rounds.
“At the end of the day, I think there’s recognition that we want to work with our Senate colleagues to get this across the line,” Steil said.
The Road Ahead
Armstrong warned that without regulatory approval for onchain yield, the U.S. risks losing billions of potential stablecoin users and “trillions in potential cash flows.” As the stablecoin sector matures and gains global relevance, Coinbase and other industry leaders are pressuring lawmakers to ensure U.S. policy keeps pace with innovation.
Whether Congress chooses to embrace this vision—or maintain strict controls on stablecoin issuers—could shape the next decade of digital finance.
Recently we wrote, that as cryptocurrency prices climb, so too does scam activity, with Coinbase users reportedly losing over $46 million in suspected phishing scams over the past two weeks.
