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Coinbase CEO Advocates for Interest-Bearing Provisions in US Stablecoin Legislation
- Coinbase CEO Brian Armstrong advocates for legislation allowing stablecoin holders to earn “onchain interest”.
- Current stablecoin bills, such as the STABLE Act and GENIUS Act, do not permit interest-bearing stablecoins.
- Armstrong believes consumers could earn around 4% yield compared to the 0.41% average savings account interest if onchain interest is enabled.
- Enabling onchain interest could enhance dollar dominance globally and benefit the US economy.
- Stablecoin issuers typically retain interest earned from US Treasury reserves rather than distributing it to holders.
- Armstrong argues for stablecoin issuers to share interest with consumers, promoting a free market approach.
- Interest-bearing stablecoins could encourage global adoption of US dollar stablecoins, according to Armstrong.
- Potential higher yields from stablecoins would result in more consumer spending, saving, and investing, fueling economic growth.
- Regulatory experts suggest that yield-bearing stablecoins may face complex regulations due to similarities with securities.
- Armstrong sees the current legislative landscape as an opportunity to modernize the financial system for consumer benefit.
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